Net4 India to raise Rs 8 crore via PE for expansion

One of the leading network and
application services provider Net4 India has approved raising Rs 8.04
crore via preferential allotment to Granite Hill India Opportunities
Fund, for its expansion drive. The company has also posted impressive
results for the last FY with consolidated sales of Rs 195 crore, a
36.9 percent rise in PAT and a 32.67 percent growth in EPS. Granite
Hill India Opportunities Fund comes in as the second PE participant
with Net4 diluting 4.7 percent.

Announcing the new developments, Jasjit
Sawhney, CMD Net4 India, said, “We are glad to have closed the year
with a strong growth momentum. We have had three consecutive quarters
of record profits and now our highest ever quarterly and annual
revenues.” Apart from expanding its service bouquet, Net4 is also
setting up a large 30,000 sq ft datacentre at Chennai. “The
datacenter will deepen our range of managed, security and SaaS
services. Under data connectivity services we shall be adding IP/MPLS
VPN services to our portfolio,” said Sawhney.

He added, “Whilst our existing
services continue to grow at a reasonable pace, we are also embarking
upon expanding the depth of our service ranges. This expansion will
entail significant investments in infrastructure and product
development over the coming years.”

Sawhney is elated with the PE funding,
which will fuel the company's expansion. The expansion will also be
funded by internal accruals and bank borrowing.