PE major General Atlantic-backed IBS Software plans IPO

MUMBAI: General Atlantic-backed IBS Software Services is looking at an initial public offering to give its principal PE investor an exit. The investor and the promoters of the company will dilute up to 20% stake in the public offering, people with knowledge of the company’s plans said.

In 2006, General Atlantic had invested $60 million for a minority stake in the Kochibased IT services company. IBS is now being valued at $350-500 million (Rs 1,897 crore to Rs 2,710 crore). The company is in talks with investment bankers for a possibleIPO as they are targeting a listing towards end of the current financial year, an investment banker with knowledge of the company’s plans said.

“This public issue will give an exit to General Atlantic. The promoters too will dilute some stake through this offer,” another investment banker involved in the discussions said.An email query sent to spokesperson of IBS did not elicit any response. In an e-mail response to queries from ET, a General Atlantic spokesperson said, “As an organisation, we don’t comment on market speculation.” The company provides new-generation IT systems to the global aviation industry across all process areas —airline passenger services, cargo operations, flight and crew operations, airport operations and aircraft maintenance engineering. For non-aviation sectors like hospitality and oil & gas, the company provides solutions to manage certain mission-critical operations.

Founded by VK Mathews in 1997, IBS has seen a compounded annual growth rate of 48% in revenues, growing primarily through inorganic route. IBS acquired six companies in Europe, USA and India in the past 15 years and now serves over 170 clients worldwide through more than 2,000 professionals. The companies it has acquired are: Atlanta-based Hotel Booking Solutions Incorporated (HBSi); Bangalore-based Moveo Systems; US-based VISaer; Virginia-based Discovery Travel Systems; Avient Technologies from Honeywell International; and TopAir from EDS.

The PE firm has invested $1 billion in more than halfa-dozen Indian companies like Fourcee Infra, Mu Sigma, IndusInd Bank, Daksh BPO, Patni Computers Systems and Genpact.