Chennai: IT products and services firm Bahwan CyberTek Pvt Ltd (BCT) is planning to tap the capital markets through an initial public offering (IPO) by the end of next financial year to raise funds for its expansion, its director and CEO S Durgaprasad has said.

The Chennai-based company has also chalked out $ five million investment to establish a 1200-seat facility at Thoraipakkam, on the city outskirts, he said.

Currently, Bahwan CyberTek employs about 250 people in India, which would be increased to 800 during the next financial year. The headcount is expected to go up further to 1200 when the company moves into the new facility.

He said Bahwan CyberTek, which was selected among the top 100 upcoming technology companies in Asia by US magazine Red Herring, was also in talks with strategic investors for private placement of its equity. The selection by Red Herring would help the company in getting better valuation during the strategic stake sale.

"We are looking for strategic investors who would bring value to the table," Durgaprasad said, adding that the process of strategic sale would be over in 3-6 months time.

The IPO would further see the dilution of the equity of the company, where 90 per cent of the stake is currently held by the Bahwan’s family of Oman. Top management team and key employees hold the remaining 10 per cent. The strategic investor was expected to hike its stake in the company during the IPO, which is slated for 2006 fiscal-end, he said.

On the revenue front, he said the company’s revenues would touch $ 45 million this fiscal, a growth of 225 per cent from the last fiscal.