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Zylog to go for pvt placement

Our Bureau

CHENNAI, Jan. 18

THE Chennai-based Zylog Systems (Pvt) Ltd will privately place 10 per cent of the company's shares for a consideration of at least Rs. 3 crores in the next couple of months.

Addressing presspersons on the occasion of the launch of the company's software tool, DP 2000, Mr. Sudarshan Venkatraman, President and CEO, Zylog, said the US arm of the company would go in for a valuation soon. ``We are expecting a valuation of about $ 20 millions for our US concern, Zylog International, LLC,'' he said.

``In the next eight months or so, our Indian concern will make an initial public offer,'' he added. It is learnt that the company will ride on the high valuations that it plans to obtain in the US to attract investors here. The proceeds of the IPO will b e used to increase its development infrastructure and to set up marketing offices in major Indian cities and in the US and Canada. It currently has two software development centres in Chennai.

The company also has a Rs. 1.75-crore loan from Small Industries Development Bank of India (SIDBI). Of this, about Rs. 25 lakhs has been repaid. The proceeds from the IPO will aid in paying off the pending amount at the time.

The company is working on an wireless application protocol (WAP) product. The product, according to Mr. Venkatraman, should be ready for launch in another six weeks. Talks are at a preliminary stage with companies such as Motorola. ``Once such big player s evaluate and approve of our product, we should be able to sell the product through them,'' Mr. Venkatraman said.

Zylog has also tied with Soft Solutions in India to market and support its DP 2000 system, a depository operation-cum-financial accounting system. Zylog is executing a project for a Wall Street company to conduct online trading.

The turnover of the company was Rs. 1.5 crores for the year ending March 1999. The revenues for the year ending March 2000 are estimated to jump by 350 per cent to Rs. 6.75 crores, of which 60 per cent has already been achieved as on date, according to M r. Ram Sesharathnam, Director, Zylog Systems.