"We have firm plans for a public issue, as this could be an effective way of retaining human talent. However, timing and other details are yet to be decided," Mr Singh said. R Systems International, which has recently completed a major consolidation exercise, is planning to use the IPO proceeds for acquisitions in the US, UK and Singapore. The company, which is currently generating a major portion of its revenue from the US, is now giving thrust to offshore software development. A part of the issue proceeds will also be used for setting up more software development centres in India.

With an eye on the three overseas markets - the US, UK and Singapore - R Systems, which is headquartered in Noida near Delhi, is currently embarking on a Rs 20-crore expansion plan.

"We have recently received two major orders from Newstakes Pte, Singapore and TMA Resources Inc, USA. In order to execute these big software development projects, our facility required to be enhanced," Mr Singh disclosed.

As part of technological collaboration, Newstakes Pte (in which Singtel and Orange Telecom hold a stake) and TMA Resources have recently acquired a small stake in R Systems, Mr Singh said. The company will be developing WAP-enabling solutions for Newstakes Pte and application software for TMA Resources, USA which is a $3 million order. Around 100-120 software engineers will be engaged in these two projects, he added.

Mr Rekhi Singh and family hold less than 80 per cent in R Systems and around 20 per cent is held by its employee trust. The current expansion involves expanding R Systems' facility in Noida, which houses 150 software persons.

The number of software professionals will be increased to 500 and the company so far has invested Rs 7 crore in the project. R Systems will also set up software development centres in Pune and Chennai. Around Rs 5-10 crore each will be invested in these two facilities. R Systems will either set up a new facility or acquire existing facilities of other software companies, Mr Singh said.

R Systems, which is mainly into the development of software for e-commerce, telecom and WAP technologies, has recently merged two group companies - one in US and the other in Singapore - into the Indian company, which have become 100 per cent subsidiaries.