Ramco Systems has raised US$ 52million through Qualified Institutional Placements (QIP) for global expansion.
The company will use the funds to compete in the ERP space and retire a substantial portion of debts.
In addition, these funds will support operational expenses to attract the right talent and boost marketing efforts in global markets.
Ramco recently published its unaudited financial results for financial year 2015, and announced net profit after tax of $US 2.09million for the year on a consolidated basis.
"Globally, Cloud companies are getting good valuation. This is the value that investors attach to IP-led businesses. India is slowly moving towards differentiating Product from Services led software businesses," said P R Venketrama Raja, vice chairman and managing director, Ramco Systems. "We are happy to be leading this curve. The successful fund raising from institutional investors is a testament of the belief and trust they place on the company and the strong fundamentals on which our business is built."
Target enterprise cloud market
Ramco is expanding and building capabilities to address the needs of the fast growing Enterprise Cloud market.
Raising funds at current valuation levels is expected to be in the long term interests of Ramco and would allow the Company to deleverage.
Public shareholding of Ramco shares has increased from 30.9% to 42.9% consequent to QIP.
"At new Ramco, the focus is on Experimentation, Innovation and Customer delight. All employees are encouraged to be outward focused and customer driven," said Virender Aggarwal, CEO, Ramco Systems. "Employees are given the freedom to share their ideas and suggestions and enjoy every aspect of their work. There is an inherent effort to build a flat and open organization where employees are encouraged to share knowledge and grow."
Sign up for CIO Asia eNewsletters.