BSE-listed web domain service provider Net 4 India will be attempting to raise funds by diluting its equity by 10 to 15%, in order to fund the expansion of its data centre. The company also has plans to expand its leased line, VPN (virtual private network) and MPLS offerings for corporates as well as push its VoIP (voice over IP) services, reports Business Standard, quoting sources. Readers should note that since the publication of this story, Net4India has not issued a confirmation or retraction to its shareholders via the BSE.
In December, the company had sold a 9.2 percent stake to private equity firm Madison India Capital HC for Rs. 150 million. So another round of fund raising? According to the report, Net4 is looking to expand data and voice offerings, for which it needs to raise funds to part-finance its datacenter expansion requirements
Headquartered in Noida, Net4India is one of India’s largest domain registrars. It has seven Internet data centres and 15 network points of presence throughout the country. Net 4 India currently offers a VoIP dialler called Phonewala with different tariffs for home/ SOHO (small office, home office), Small and medium enterprises (SMEs), corporates, BPOs and call shops. Its latest services include a pay-as-you-go e-mail hosting service called Ex-Mail and Microsoft Hosted Dynamics CRM 4.0.
The company reported a 28 percent year on year rise in consolidated net profits of Rs. 32.1 million over revenues of Rs. 511.5 million for the quarter ended December 2009. Domestic sales contributed Rs. 1..32 million whereas international sales contributed Rs. 2540 million.