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GC Info to hit market with Rs 1.25 cr issue 

Anand Krishnamoorthy  
Chennai: GC Infotech Limited (GCI) plans to tap the capital market in July through a public issue aggregating Rs 1.25 crore at par. This was divulged by the Arvind Vyas, chief executive officer to The Financial Express. The company proposes to utilise the funds raised to develop infrastructure, set up a overseas corporate office in London and partly fund working capital requirements. The promoters stake after the public issue is slated to be 75 per cent. GCI is in talks with Bank of Madura and Nagarjuna Financial Services to act as a merchant banker for the issue.

The genesis of GCI can be traced to Giri Computers which was set up in 1990 as a private limited entity. The company specialized in training students in computer aided design/computer aided manufacturing and also undertook services. The company was taken over by a group of professionals who pumped in Rs 3.75 crore in April and then renamed the company to GC Infotech Limited.

GCI is setting up a Rs 2.5 crore software development centre which isexpected to commence operations shortly. The company expects to add 60 to 70 professionals in the next few months and take the number to 300 in 3 years time. To strengthen its marketing infrastructure, the company has tied up with Net Zones Solutions, USA and also with Palacegate Software Limited and KPRD Consulting Limited, UK. The company also plans to set up its own corporate office in London soon.

On the products front the company is in the process of developing an enterprise resource planning (ERP) package for small and medium size establishments. GCI has entered into a tie up with SDRC of Cincinnati, USA, to distribute the latter's product I-DEAS 8.0 in the southern states and also act as authorised training institute for the same. The company has entered into an exclusive arrangement with Universal Documents Management Systems, USA to distribute the latter product STEP 2000 in India. STEP 2000 is a rapid application development tool which cuts down development time considerably.

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