The Company intends to raise funds through this Offering to finance the following, in the order of priority;
i. Increase the Company’s investment in Procifinity Limited, presently a 90% owned subsidiary incorporated on June 2, 2010
by Rs. 300 million to carry out Business Process Outsourcing/Knowledge Process Outsourcing services and to establish
an Internet Data Centre. The presently estimated investment required to enhance the BPO/KPO operation by setting up
a state-of-the-art facility is approximately Rs. 100 million. The estimated investment to set up a fully-fledged 2,000 sq. ft.
Internet Data Centre at the existing premises of PCH is expected to be approximately Rs. 200 million. These facilities
are expected to be operational during the Financial Year 2010/11. A comprehensive analysis of the BPO/KPO and IDC
industries, assumptions regarding the future plans and associated risks regarding the operations of Procifinity Limited are
discussed in Sections 6.2 and 6.3; 7.5.3; and 11.4 respectively of this Prospectus.
With the anticipated investment of Rs. 300 million (300 million shares at Rs. 1.00 each) in Procifinity Limited which would
be financed through the proceeds of the IPO (approximately 48% of the IPO proceeds), the Company would increase its
stake in Procifinity Limited to 99.99%.
ii. The remaining funds raised from the Offering, subsequent to meeting all expenses in relation to the same, would be utilised
To retire expensive short term borrowings obtained to finance working capital amounting to approximately Rs. 160
To finance branch expansions of PCH amounting to approximately Rs. 32 million;
To improve service quality, to establish new product affiliations and for the incremental working capital requirements
amounting to approximately Rs. 70 million.
Greenwich Lanka (Private) Limited (a 100% owned subsidiary of PCH)
To finance the incremental working capital requirements amounting to approximately Rs. 20 million.
To finance the incremental working capital requirements amounting to approximately Rs. 15 million.
The Company expects to utilise the IPO proceeds by March 2011.