Intel to invest Rs 32-cr in Allied Digital, to pick 3 pc stake

MUMBAI: Global chipsets major Intel's venture capital arm, Intel Capital, has entered into a tie-up with IT company Allied Digital under which it will pick-up close to a three per cent stake in the BSE-listed Indian company.

"This is a strategic tie-up under which Intel Capital will be investing Rs 32-crore to subscribe to warrants which can be converted into equity in up to 18-months," Allied's Chairman and Managing Director, Nitin Shah, told PTI here.

Once converted into equity, Intel Capital will hold close to a 3 per cent stake in the company, he added.

The investment from Intel Capital will make Allied Digital a "cloud ready" company and also help it expand into newer geographies in South-East Asia, Europe and the Middle-East courtesy Intel Capital's relationships, he said.

"Intel has launched the V Pro processor recently which facilitates multiple operations at the same time. It will help us with our remote management services and hence make us cloud (computing) ready," Shah said.

Under the deal, Intel Capital will be paying 25 per cent of the amount up front and the rest at the time of conversion of the warrants into equities, he said, adding there is a lock-in of one year on the equity shares.