The board of directors of Zensar Technologies has announced a stock buyback plan with a maximum price of Rs 165 a share and a minimum outlay of Rs 40 crore. .
Dr Ganesh Natarajan, Vice-Chairman and Managing Director, said a committee of directors would finalise the plan, which would be subject to shareholder approval through postal ballot. He said the promoters, the RPG Group, has 53 per cent shareholding. Electra holds 21 per cent share and the rest are with the public.
Acquisition plans
Outlining the company’s strategies, Dr Natarajan said it has earmarked Rs 100 crore for acquisitions, mainly in the knowledge process outsourcing (KPO) and infrastructure management sectors. Information security and data-centre hosting from India are the other areas under consideration, he said.
During the past three years Zensar acquired three companies — Hyderabad-based OBT for SAP; Tokyo-based EZA Ltd for entry into the Japanese market; and the New York-based Thought Digital (Oracle-based company). This is expected to double revenues in the next five years, he said.
Mr Vivek Gupta, Executive Vice-President and currently Chief Executive of India Operations, said new services were introduced last year to bring in new business, especially in the areas of package implementation, testing, infrastructure management and KPO. During the first quarter of the current fiscal, the company won a $17-million order in the insurance space in the US, he said. It has received new orders worth Rs 200 crore, which constituted 30 per cent of the order booking, he said, adding that the rest came from annuity business.
Impact sourcing
On impact sourcing, he said the company was aiming at Rs 100 crore by the end of the current fiscal. The impact sourcing 10/10 formula gives a saving of 10 per cent in any chosen process within the first ten months of its engagement; it has been pilot tested and is simultaneously offered to customers in the US, Europe, Japan and India.
Source: The Hindu Businessline