Helios & Matheson in talks to raise money through stake sale

MUMBAI: Mid-sized information technology (IT) company Helios and Matheson is in talks with a clutch of institutional investors to raise money through a share sale, two sources close to the development told ET.

Helios, which is listed on the US-based Nasdaq, is talking to Abu Dabhi Investment Authority, Morgan Stanley Mauritius, Afrin Dia and India Max Investment Fund to place the shares, the sources said.

The company, which may issue warrants or fresh shares equivalent to 20% of its total equity, is looking to acquire US-based technology companies which cater to haltehcare and banking sectors.

“We do not comment on market speculation,” said GK Muralikrishna, chief executive officer and managing director, Helios. “Currently, the company’s top priority is organic growth and we keep looking at inorganic growth as and when the right opportunity comes.”

Helios is said to have appointed two investment banks for the share sale. A nondisclosure agreement may be signed with institutional investors in the next few weeks, said sources. Promoters hold a 46% stake in the company.

Helios shares, which touched a 52-week high of Rs 135 in February, closed at Rs 96 on Wednesday.

The company has a topline of close to Rs 700 crore for 2012-13. Helios mainly caters to banking and healthcare sectors. Nearly 73% of its revenues are from the US market and 23% from Asia Pacific, said a Crisil report dated April 3.

Helios had acquired Bangalore-based System Logic Solutions and Laxmi Group headquartered in California in 2001. It acquired US-based Maruthi Consulting and TACT in 2004 and 2006, respectively.