The IT sector has everything to be happy about. The government's policy framework for the software industry will continue to be supportive and enabling, rather than be a barrier to progress and innovation, Prime Minister Manmohan Singh said at the three-day Nasscom Leadership Forum.
"We are committed to the growth of this flagship sector and will do all that is possible in the realm of the government to promote its sustained growth and success," he said. He said the $60-bn export target of the industry needs to be moved forward from 2010 to 2008, and the 2010 target needed to be revised to $80 bn. For this the software industry needs to move towards system solutions and the BPO industry must not only retain its first mover advantage but also move up the value chain, increasingly becoming a KPO.
Chrys Cap selling BPO to Aegis
Private equity major Chrys Capital and other investors are selling credit Global Vantedge to the Essar-owned Aegis Communications for around Rs 100 crore. Chrys Capital, which owns 75% in Global Vantedge, had set up the BPO in 2001. It's headquarters are based in the US and it employs 1,500 people in tow centres in Gurgaon.
It specialises in credit and receivable management and its customers include credit card companies, telcos, and auto companies primarily in the US and Uk. Chrys Capital had invested in the BPO for the last five years and in line with the general trend in the private equity industry of not holding on to an asset for a very long time, it had been evaluating exit options.
Tatas offload 0.84% in TCS
Tata Sons, the holding company of Tata Group, raised more than Rs 1,000 crore on Thursday by selling 0.84% of its equity stake in software major Tata Consultancy Services (TCS), taking the total amount raised so far to about Rs 2,800 crore (about $622 million).
Although the Tata Group didn't provide reasons for selling the stake in its disclosure to BSE, it is learnt that the proceeds could be used for part funding Tata Steel's $12.1-billion acquisition of Corus. In a statement issued to BSE, TCS said Tata Sons has sold about 8.1 million equity shares of the software company to an undisclosed buyer.
While the statement didn't mention the price at which the transaction was concluded, going by Thursday's closing price of Rs 1,300 per share, the value of the deal could total Rs 1,035 crore. This is the third time in three months that the holding company has diluted its equity stake in TCS, which on December 31, 2006, stood at 78.3%. On February 6, Tata Sons sold 6.9 million equity shares raising Rs 900 crore.
Dhoots enter telecom
Videocon -- one big name that missed out on the telecom boom story -- has finally got a foot in the sector. The $3-billion consumer electronics group will partner US telecom giant Verizon's foray into ILD services in India. Verizon, which is keen to tap the lucrative market for long-distance calls from India-the call centre of the world - has formed a JV called Verizon Communications India with Leo Communications of the Videocon group.