NIIT defers QIP plan for current fiscal

NEW DELHI: Enterprise learning solutions company NIIT has deferred its plan to raise Rs 230 crore through qualified institutional placement (QIP) in the current financial year.

The company had announced its plans to raise funds through QIP and had taken board approval in October this year and expected to close the process in current fiscal ending March 2010. NIIT CEO Vijay Thadani said, “It is unlikely this year” , adding that the money was to be used for expansion plans.

“We are yet to put our expansion plans in place. Once that is done, we will think about the funds.” He also said the company had not started the QIP process as yet. On the issue whether, it has shelved its plan of raising funds through QIP route, he said, “We still have the option to do it or not.”

He was speaking on the sidelines of Ideas India 2009, organised by Aspen Institute India. As per the October board resolution, the company had plans to raise Rs 230 crore, including promoters’ infusion of Rs 30 crore through preferential issue of convertible warrants and Rs 200 crore to institutional investors through QIP route.

Taking about growth in emerging markets, Mr Thadani said the company was doing well in China. “Our Chinese business is growing at around 50% at present. We expect similar level of growth in the coming year as well,” he added.

He further stated that the company is also looking forward to do good business in African countries such as South Africa, Nigeria, Ghana and Botswana. In Asia, Mr Thadani said that the Vietnamese and Thai markets also look promising in the near future. In domestic market, NIIT is eyeing to aggressively participate in the forthcoming projects under the Sarva Shiksha Abhiyan programme. In the next couple of months, the union government is going to start the process of awarding projects.

These projects involve imparting educational training to government teachers, providing infrastructure management, course development , and child tracking systems, among others. NIIT had posted a net profit of Rs 26.2 crore in the quarter ending September 2009. The company’ shares closed at Rs 70.35 on the National Stock Exchange on Thursday, up 0.4% from the previous day’s close.