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Melstar Info to set up two software development centres
Kavita Nair
Mumbai : Mumbai-based Melstar Information Technologies Ltd will be investing Rs 9 crore for setting up two new development centers in Mumbai and Bangalore and will also be expanding two of its existing facilities. Currently the company has nine development centers, which include two RADCs (rapid application development center) one each in San Jose and London. The new development centre can house 500 more software professionals, taking the total number of professionals employed by Melstar to 1,000 by March 2002. The expansion will be conducted in a phased manner and will be completed by the next fiscal, explains Mr Pankaj Dodeja Manager-Corporate Planning. The company plans to raise the investment through various sources.One is through the company's forthcoming Rights Issue. The size of the issue is around Rs 16-20 crore, and is expected in a couple of months. The company is also planning on funding part of the investment through debt and is currently speaking to some of the financial institutions. Mr Dodeja says "since we are a zero debt company, taking the debt will be no problem." The total amount raised through the rights issue and borrowings will be deployed for the company's expansion activities and also for paying for the three acquisitions completed by the company recently. Seventy-five per cent of the money for these companies, (Linkhand Ltd based in UK, itc Consulting GmbH's non Swiss European business, and Global Systems development Inc based in New York), will be given by way of equity of Melstar priced at Rs 140 and remaining will be in cash. The future plans of the company adds Mr Dodeja is to create a world-class IT organisation in terms of technology and people, and provide outsourcing services to develop andsupport e-commerce solutions. The company also plans to focus on software application and business consulting, and to develop and deploy products and solutions catering to the financial services and technology business. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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