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Net4 India to raise 8 cr via PE for expansion

Leading Network and Application services provider Net4 India today said it has approved raising 8.04 cr via preferential allotment to Granite Hill India Opportunities Fund, for its expansion drive.

Net4 has also posted impressive results for the year ended March 31, 2010 with the consolidated sales of Rs 195 cr (up by 21%) , a 36.9% rise in PAT at Rs 11.5 cr and a 32.67 % growth in EPS to Rs 6.66.

Granite Hill India Opportunities Fund comes in as the second PE participant with Net4 diluting 4.7%. Earlier Madison India Capital had invested Rs 14.9 cr acquiring a 9.2 % stake in the company.

Apart from expanding its service bouquet, Net4 is also setting up a large 30,000 sq ft Data Centre at Chennai.

Announcing the new developments, Mr. Jasjit Sawhney, CMD Net4 India Ltd, said, “We are glad to have closed the year with a strong growth momentum. We have had three consecutive quarters of record profits and now our highest ever quarterly and annual revenues.”

He added, “Whilst our existing services continue to grow at a reasonable pace, we are also embarking upon expanding the depth of our service ranges, apart from adding new services in the area of Network and Application services. This expansion will entail significant investments in infrastructure and product development over the coming years,” he said.

Mr. Sawhney is elated with the PE funding, which will fuel the company's expansion. The expansion will also be funded by internal accruals and bank borrowing. This expansion will be in Data Centre services and Data Connectivity services. We will be setting up a 30,000 sq ft Data Centre and deepen our range of managed, security and SaaS services. Under data connectivity services we shall be adding IP/MPLS VPN services to our portfolio.

With the expansion of the service bouquet and investments in infrastructure, Net4 hopes to significantly increase the growth rates it has been achieving over the last few years

About Net4 India Ltd.

Net4 is India's leading Network and Application Services Provider. It is a BSE-listed business enterprise with consolidated revenues to the tune of Rs. 195 Crores (2009-10). Net4 focuses on providing services to businesses (small, medium and large) and its offerings include Enterprise Internet Services, Data Centre Solutions, VoIP Solutions, and Enterprise Messaging & Hosting Solutions.

Headquartered in Noida, Net4 has a PAN India presence with offices in 11 major business cities & an ever-growing clientele which includes 800 Corporate Data Center Customers, 2800 Business VoIP customers, 75,000 hosted websites, 870,000 corporate e-mail accounts & 250,000 registered domain names. Net4 is amongst the largest provider of hosted email, web hosting and domain name registration in the Asia-Pacific region.

The company's client base includes the likes of CNBC TV18, Essar, Godrej, Hutch, ITC, L&T, Lufthansa, NIIT, ONGC, Proctor & Gamble, Reliance, Sahara, SBI, Siemens, TCS.

Net4 operates seven (7) state-of-the-art Internet Data Centers (IDCs) and 15 Network Points of Presence across the country, providing the highest possible levels of availability, scalability and security. This infrastructure is connected to an STM-8 Internet Backbone across multiple undersea cables and to NIXI via DS3-STM interconnects in all cities. Net4 also manages a VoIP/ SIP infrastructure with a capacity of 100 million minutes per month hosted out of India, US & Singapore.

Net4 has the distinction of being the first IP Communication Company in the World to be IS0 27001 certified, for Information Security standards adopted at its Data Centers.

It is also ISO 9001:2000 certified, a Microsoft Gold Partner and an ICANN & .IN accredited Domain Name Registrar.

About Madison India Capital

Madison India Capital is a private investment firm specializing in Indian media, communications and business services related to those industries. They are backed by industry veterans as well as institutions. Since they are specialists in their sectors of focus, they are positioned as a value added investor with a deep set of industry and capital markets relationships.

They are focused on media and communications as well as business services related to those industries. These sectors of focus include radio and television broadcasting, publishing, marketing services, content and distribution, information services, offshore services related to media and communications, wireline and wireless telephony, broadband, as well as other media, communications and business services sectors.

They strive to build long-term partnerships with management teams of high growth middle market companies that strive to shape the media, communications and business services industries in India.

The typical investment consideration is $5 to $20 million in companies and they also evaluate equity investments of up to $50 million in conjunction with their limited partners.

They involve partners with operational backgrounds in the due diligence process and subsequent development of portfolio companies. While they are not involved with the day-to-day operations of companies they provide a resource and a constructive sounding board to their portfolio companies.

Madison India Capital is focused on middle market growth companies.

About Granite Hill India Opportunities Fund

Granite Hill India Opportunties Fund is a mid-stage private equity fund focused on India-based and India-related investment opportunties. The fund is distinguished by the deep operating experience, investment background and the strong India business network of the Partners. The four investment professionals have over 40 years of total investment experience in Silicon Valley and India. India's strong economic growth, along with the wide range of private businesses which need to scale to meet robust demand, provides a unique opportunity for investment returns. Further, this opportunity is present across multiple sectors, including but not limited to Techonology, Infrastructure Services, Financial Services, Consumer Goods, Travel & Tourism and Communications. The fund managers work closely with entrepreneurs to develop business practices that enable the operating scalability required to fully exploit this market potential.

Source: India PR Wire

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