A formal announcement about the strategic partner and the proposed change in the equity structure is expected within the next 90 days. Microland Group chairman Pradeep Kar told The Financial Express that the company had already zeroed in on a partner.

However, he declined to name the venture capital fund which will not have any major management control over the company after acquiring the share. ``Since we have not yet sealed the deal, I cannot comment on the proposed equity holding of the partner,'' Kar added.

Microland, which is passing through a transition stage involving change from a hardware company to a service-oriented firm with international focus, will not come out with an initial public offering (IPO) during current fiscal, Kar said.

He said the planned IPO would hit theprimary market in the second half of the next fiscal. ``The recent upward trend in the software scrips will not force us to float an IPO. It will reach the market at an appropriate time,'' Kar added.

At present, ICICI Venture and Infrastructure Leasing and Financial Services (IL&FS) each have a stake in the Rs 4 crore equity of Microland, apart from Kar and his employees through an employee stock option. For the purpose of offering a stake to the venture capital fund, the company will raise its equity base shortly.

Meanwhile, the company on Monday announced the launch of a technology portal `ITspace' (www.ITspace.com) in Bangalore.

By offering a range of news, user-generated content, discussion forums and networking opportunities, ITspace is aiming to be the resource destination and personal networking platform for infotech decision-makers. It offers to-the-minute domestic and international news and analysis including stock prices of infotech companies on overseas bourses.

Kar told reporters that thecompany has plans to hive off this division into a separate entity in which a part of the promoter's stake will be given to a strategic partner in the future. The investment for creating the division is in people, technology and ideas. The company is aiming to reach about 20 per cent of infotech industry professionals in the country.

ITspace is divided into six sections including web applications, enterprise management, IT services, manufacturing, finance and banking and IT policy. The revenue to the company will come from advertisements and data resources, he added.