Mumbai,India, 15 March 2007: Rolta India Ltd, is in final stages of talks to make an acquisition in the GIS (geospatial information services) space. The deal size is around Rs 200 crore and company wants to seal the deal in middle of the next financial year. The company may look to raise funds from debt sources if needed as it does not want to dilute its equity base.
According to Hiranya Ashar, CFO, Rolta India “It is true that the company is actively analyzing the acquisition but nothing has been finalised yet.” The company expects annual revenues of around Rs 680 crore this fiscal, Ashar added.
Rolta’s balance sheet is strong enough to digest a debt-funded, moderate-sized acquisition. The company earns 60% of its revenues from domestic operations providing CAD solutions to Central and state governments and their agencies. Experts say adverse changes in government and defence policies or governmental budgetary constraints could negatively affect Rolta’s business.
On future plans, K R Vaidyanathan, director, operations, Rolta India, said: “Rolta will set up a software development and knowledge process outsourcing (KPO) centre in Kolkata for the domestic and international markets. In the first phase, the company will employ 2,000 people, and later it could go up to 4,000. The company plans to hire around 5,000 by 2008.”