Virtusa to expand in India, Sri Lanka

April 11th, 2007

Massachusetts-based Virtusa Corp, an information-technology services firm with operations in India and Sri Lanka, plans to raise USD 92 million through a NASDAQ listing.

The company filed for a public issue last Friday with the US Securities and Exchange Commission, a statement said.

The firm hopes to use USD 30 million of the proceeds to fund the construction of a new facility on its planned campus in Hyderabad, India, over the next three years.

The balance amount will be used for working capital and other general corporate purposes, including financing the expansion of its global delivery centres in Colombo and Chennai, India.

“The proceeds would also be used to hire more people, sales and marketing activities, capital expenditures, and possible strategic alliances or acquisitions.”

Virtusa did not say how many shares will be offered in the initial public offering (IPO) or at what price.

Virtusa, co-founded by its Sri Lankan born chairman and Chief Executive Officer Kris Canekeratne, also has offices in the US and the United Kingdom.

The company has applied to list the stock under the symbol ‘VRTU’ on the NASDAQ Global Market.