Initial public offering (IPO) of the Infinite Computer Solutions India opens today as it offers 11,503,000 equity shares of Rs. 10 each. The company is a global player in the fields of Infrastructure Management, Intellectual Property (IP) leveraged solutions and IT services and focuses on Telecom, Media, Energy, Manufacturing, and Healthcare industries.

The IPO consists of new shares numbering 57.33 lakh worth around Rs 94 crore and 57.69 lakh shares on offer from White Rock Investment, Vaibhav Bhatnagar and Sanjay Govil worth around Rs 95 crore. A price band of 155-165 per equity share has been fixed. The subscription for the issue will close on January 13, 2010.

The company expects market cap at Rs 681–725 crore after the IPO with around 4.3957 crore in outstanding shares. The promoter’s stake in the company will go down from 78% to 63.2%.

The capital raised from fresh shares will be used in parts of 25.7 crore, Rs 38 crore and Rs 8.4 crore for capital expenditure, acquisitions and repayment of debt respectively.

The company has 14 offices in various countries, which include UK, India, China, Malaysia, Singapore and Australia. The company also has a network of delivery facilities across India and the United states including four delivery centers in India with an owned facility in Bangalore and leased facilities in Hyderabad, Gurgaon and Chennai.

The company reported a net profit of Rs 36.2 with Rs 128.7 crore in revenues for the year ended March 31, 2009, while a net profit of 20.7 crore on revenues of Rs 92.5 crore was reported for the six months ended September 2009. Around 90% of the revenue for the company comes from US with Telecom vertical contributing 60% to the company’s total revenue.

With a very high client concentration, the top 10 clients of the firm contribute 91% of the revenue. In the financial year 09 the revenue of the firm increased 44% while a much lower 12% growth in revenue was reported between FY 05 and FY 08.

Most of the mid-tier companies trade at a P/E of 10. Infinite demands P/E of 15.1 on FY 09 net profit and 10 on annualized HY 10 earnings. Mainly Investors with high-risk appetite are expected to apply for the issue as company is seen as too dependent on few clients in telecom domain and suspected whether it can sustain the sharp rise in its profits and profitability, post listing.