Taksheel Solutions which is an Information Technology firm has launched it IPO worth Rs. 80 crores than had opened today morning. As per the company the company is raising about Rs82 crores for the upper band and Rs.71 crores from its lower band. The company has planned to use Rs.22 crores of the IPO for acquisitions which includes:
- Rs 9.15 crore for the Hyderabad development center
- Rs 8.65 crore for the Warangal development center
- Whereas the remaining Rs.12.8 crores has been planned to increase the working capital of the firm
Looking at the company’s results it would be observed that the company had negative cash flows for the past few years which raise a question as to why the company is showing negative cash flows though they are making profits. The company says that it is due to expansion investment is the reason for that state and company is performing well in terms of its business. The core business of the company is wealth management to large financial institutions who are looking to expand in wealth management business. To these companies Taksheel Solutions provides the technology support.
Observing the wealth management industry over the years we can see that it has grown and is still growing. There seems to be a great opportunity for companies such as Taksheel Solutions for providing their services to the growing wealth management companies.
Bell the Bull says: A new IPO of a company which promises to perform well in future