GSS America Infotech Ltd IPO opens Feb. 11, Price Band fixed at Rs. 400 to Rs. 440

GSS America Infotech Limited, a total IT solution provider, specializing in, IT Infrastructure Management Services and Enterprise Application Integration, IT consulting proposes to enter the Capital markets on 11th February 2008 with a public issue of 34,97,495 Equity shares of Rs. 10 each through 100% Book Building process.

Mumbai, 7th February 2008: GSS America Infotech Limited, a total IT solution provider, specializing in, IT Infrastructure Management Services and Enterprise Application Integration, IT consulting proposes to enter the Capital markets on 11th February 2008 with a public issue of 34,97,495 Equity shares of Rs. 10 each through 100% Book Building process. The Issue closes on 15th February 2008 and the price band has been fixed at Rs. 400 to Rs. 440 per Equity share of Rs. 10 each. After allowing for reservation of 1, 57,495 Equity shares for eligible employees, the net issue to public will be 33, 40,000 Equity shares, constituting 25.11% of the post issue paid up capital of the company. Religare Securities Limited and Edelweiss Capital Ltd. are the BRLMs for the Issue and Bigshare Service Pvt Ltd is the Registrar to the Issue. The Equity shares are proposed to be listed on BSE and NSE.

IL&FS Trust Company Ltd. A/c IL&FS Pvt Equity Trust-Tara India Fund-III, a venture capital fund registered with SEBI holds 12.77% stake, Kubera Cross-Border Fund (Mauritius) Ltd holds 10.20% stake and Minivet Ltd holds 3.57% stake in the pre-Issue paid up capital of the Company.

The Company proposes to utilize the net proceeds of the Issue for setting up of state of the art Global Delivery Centre (GDC) at Hyderabad with 1000 seater capacity, setting up overseas offices, meeting working capital requirement and for acquisitions. Presently the company is operating in India from its two Global Delivery Centers in India, one at Jubilee Hills, Hyderabad and second at Hitech City, Madhapur, Hyderabad. Further, GSS also has two GDCs in Chicago, US.

GSS America also plans to acquire/establish facilities in Europe, Middle East and Far East. Initially, these facilities will look after the implementation and support functions for the products and eventually they will be independently looking after the marketing functions of the Company in their respective regions.

The Company has already acquired office space at Dubai Internet City in Dubai, United Arab Emirates. It is yet to identify locations for its overseas offices in Europe and Far East. These offices are expected to stabilize their functions and establish themselves in about 2 years from the date of start-up, spanning Fiscals 2008, 2009 and 2010. The Company also intends to raise funds for Acquisitions. It is a key component of its strategy to grow through acquisitions and strategic partnerships.

The Company's present operations can be classified into two areas namely Enterprises Application Integration, (EAI) Infrastructure Management and Managed Services (IM/MS). Its clientele include major Fortune 1000 companies like Ernst & Young, Blue Cross Blue Shield of NC, BMC Software, Thomson, WR Grace & Co, TDS Telecom, Pepsi Co, etc. As a strategy to derisk, the Company has diversified its portfolio of service offerings by acquiring profit making IT services companies in USA. The Company's total income on a consolidated basis has increased from Rs 63.16 crores in FY2006 to Rs 164.63 crores for FY2007 and further to Rs 204.61 crores during the first 9 months of FY2008. The net profit during the corresponding periods were Rs 10.93 crores, Rs 37.09 crores and Rs 43.75 crores respectively.

The Company is Microsoft Gold Certified Partner, BEA Select Partner and TIBCO Alliance Partner. These Partner Programs provides it a platform to keep abreast the latest technology developments that happen in these organisations so that it can continue to provide solutions in the latest software releases.

Disclaimer

The Company is proposing, subject to market conditions and other considerations, a public issue of the equity shares and has filed the Red Herring Prospectus with Registrar of Companies, Hyderabad, Andhra Pradesh. The Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in , the website of the Book Running Lead Managers at www.religare.in,www.edelcap.com and the website of the Company at www.gssamerica.com.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, not shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

"This announcement is not an offer for sale or solicitation of an offer to buy securities in the United States, or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of GSS America Infotech Limited have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act."

Any potential investor should note that investment in equity shares involves a high degree of risk. For details, see the section titled "Risk Factors" of the Red Herring Prospectus, which has been filed with the Registrar of Companies.

For More Details: Rohan Hegde, Concept PR, M: 09870 123 797, Tel: 022 22076321, rohan@conceptpr.com, rohanshegde@gmail.com

Concept PR