3i Info to use sale proceeds of unit to repay bank borrowings

Company sells Global Billing and Payment unit for USD 137 millin to Cerberis Capital Management to repay bank borrowings.

PTI | May 17, 2011



IT firm 3i Infotech that signed an agreement with Cerberus Capital Management to sell its US- based Global Billing and Payment unit for USD 137-million (nearly Rs 617-crore), said it will use the garnered amount to repay its bank borrowings.

"We will use this money for repayment of our bank borrowings. Our net borrowing is around Rs 2,000-2,100-crore and from here we may get around Rs 600-crore, so the entire money will go for repayment of our bank borrowings," 3i Infotech Managing Director & Global CEO, V Srinivasan, told PTI.

The IT firm's subsidiary, 3i Infotech Financial Software, decided to sell the unit to Cerberus Capital Management, after a bidding process that lasted for two and half months, but he did not identify the bidders who participated in the bidding.

The transaction is expected to close within two months, subject to customary closing conditions and any regulatory approvals, 3i Infotech said.

"This enables 3i Infotech to go back to its roots as a significant IT products and services player while at the same time allowing the billing and payment unit to be acquired by an organisation interested in growing it as an independent company," Srinivasan said.

Cerberus Capital Management is a private investment firm with USD 23-billion of capital under management.

The firm provides IT services and BPO to 50 countries across five continents in sectors like banking, financial services, insurance, Government, manufacturing, retail and telecom, among others.

Srinivasan said the company presently does not plan to acquire a firm to expand its presence and said it would look only at the "organic growth model".

The company will focus on achieving a deeper penetration in the existing market, and is targeting its banking and financial services to provide a fillip in this regard.

The company's scrips ended at Rs 49.80 on the BSE, down 0.40 per cent from its previous close.
 

Comments

 

Other News

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India`s LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any s

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state.   According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages  

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po

Borrowing troubles: How small loans are quietly trapping youth

A silent crisis is playing out in the pocket of young India, not in stock markets or government treasuries, but in smartphones of college students and first-jobbers who clicked on the Apply Now button without reading the small print.  A decade ago, to take a loan, you had to do some paperwor


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter