Company plans र250-crore preferential issue; funds to be used for M&A, says MD

Take Solutions Ltd. said it is exploring acquisitions in North Amercia and Europe, said a top official. This forms part of its plan to strengthen its global footprint.

HR Srinivasan, founder and Vice-Chairman of TAKE Solutions

“We have already initiated talks with a half-a-dozen firms in the clinical and regulatory spaces,” said Srinivasan H.R., vice chairman and MD, Take Solutions. “We expect to close the deal by the first half of 2018-19.”

For this, the Chennai-based technology firm focussed on life sciences and supply chain management, is planning to raise र250 crore through preferential allotment to its promoters. Most of the funds would be used for inorganic growth.

“By Monday, the Securities and Exchange Board of India will determine the price. The issue price will be decided next week and the shares will be issued by March. Right now, the promoters hold 63% stake and it would increase by another 4% to 5%,” he said. According to Mr. Srinivasan, Take Solutions is eyeing firms that would enable it to enhance its global footprint in North America and increase its capability in therapeutic areas and in niche technologies.

‘May buy one or more’

“Currently, we are talking to two technology firms and four service companies. Eventually, we might acquire one or multiple firms in these fields,” he said.

Noting that Take was present in 12 countries and in 22 locations, Mr. Srinivasan said the U.S. accounted for about 80% of its revenue.

“We are not present in Japan and Australia. We will expand at a phase that is comfortable to our clients and to us. We might enter Japan ideally through a joint venture with a local partner who understands local requirements better. We are not in a hurry to expand unless we find that we are not fancying that entry,”

Vision 2021

Mr. Srinivasan said their vision was to hit $500 million revenue mark by March 2021 from the present $200 million. “Acquisition would gives us about $100 million to $150 million revenue. Without acquisition, we can easily post revenue of $350 million.

Take Solution has an order book of $163 million, of which $151 million relates to life science and $12 million for supply chain. It would take at least seven to nine months to execute it, he said.

Source

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No. 27, Tank Bund Road,
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Email : contact@takesolutions.com

Phone : +91 44 6611 0700/701

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