Advertisment

Well manage shareholder expectations

author-image
DQI Bureau
New Update

First, congratulations on the great IPO show reports.

After a decision to not go ahead with an IPO last time, to today with a

successful IPO, I am sure life and business would change a lot from here. Does

it bother you a bit?




Yes, we had planned an IPO some time back but the market conditions didnt seem
right. As about the changes ahead and moving forward, the q-o-q routine would

set in for sure. That would be new to us. Also, so far we have been managing

expectations of employees and customers. Now shareholders would join that pack

too. We have been looking forward to it and preparing for a while.

Advertisment

What are the bright points of a public issue, now that

you have done one?



To name a few, visibility, a different q-o-q radar, availability of shares

in the market, potential employee attractiveness, improvement in the recruitment

tunnel, better customer awareness.

MindTree, that also has a good presence in the product engineering space, had

an over-subscription too (around 103 times) in 2007. It attracted a lot of QIB

(qualified institutional buyer) interest like in your case. Would it be right to

attribute a good market response to the factor that OPD is still a white space?

Advertisment

Its a good company. But I cant dissect too much into it and comment. QIBs

are the ones who study the company and industry very well. But, what I can

better talk about is the industry. We are in a good market and in a good area.

OPD is going on a road where new versions of software products as well as many

disruptive areas are going to redefine the market. With cloud computing,

collaboration, analytics, etc, there would be some disruptive product

development too. This would require OPD partners to have a better, faster and

cheaper product development.

Any changes that you are planning for the business model?



Not much. We are in a good market and position as I said. We would continue

doing what we have been doing rather than change the model. Hence, no plans for

the short term. Our four main horizontal areas have a lot of potential and we

have built more expertise around that.

How do you plan to use this growth capital?



Mainly Rs 128 crore would be raised apart from Rs 40 crore as secondary

shares. The first lot has a well defined plan. Rs 76 crore would be pumped in

establishing development facilities and completion of the Hinjewadi and Nagpur

setups. Rs 20 crore would go for hardware, etc, and Rs 3 crore for a SEZ

subsidiary and the rest for general corporate reserves and some for issue

expenses.

Pratima Harigunani/CMN



maildqindia@cybermedia.co.in

Advertisment