Cranes Software plans to raise € 42 million through FCCB offering to fund its aggressive growth plan
Barclays Capital is the Sole Bookrunner and Lead Manager for the offering.
Bangalore, 16 March 2006: Cranes Software International Ltd., a global scientific and engineering software solutions provider, today announced the closure of its € 42 million offering of unsecured foreign currency convertible bonds (FCCBs). Barclays Capital is the Sole Bookrunner and Lead Manager for the offering.
Funds generated from this offering will be utilized towards further strengthening Cranes' financial structure, acquisition of IPs, businesses, products and companies, retirement of foreign currency term loans and capital expenditure towards optimization of growth prospects. The investment will enable the Company to reach focused markets through its proprietary products by addressing specific vertical areas through a modularization approach, improved go-to-market strategy by undertaking focused initiatives in that direction and to further augment its growth into enterprise-wide applications market.
Details of the FCCB offering
FCCBs issued by Cranes will have a tenure of five years and will be due in March 2011. These instruments carry a coupon rate of 2.5% (payable semi-annually) and are convertible into ordinary equity shares or GDRs of Cranes at a premium of 35% over the weighted average price of the Cranes stock on the Bombay Stock Exchange on the launch date 13th February, 2006. The bonds will have initial conversion price of Rs143.293 per share. The FCCBs are intended to be listed on the Stock Exchange of Singapore.
Cranes' growth strategies
Cranes has demonstrated strong growth momentum by building upon the strengths of its IP-centric technical software products business. It has successfully implemented a unique 'acquire, enhance, expand' business model that focuses on opportunistic acquisitions of well-established but undervalued software brands, effecting continuous enhancements to maintain their cutting edge and leveraging a global sales network to reach the scientist and engineers with effectiveness and impact.
Over the last few years, Cranes has expanded its domain/vertical capabilities, while delivering on localized strategies and initiatives globally. At present, Cranes is well positioned within its key focus areas of mathematical modelling, statistical analysis and visualization and presentation. The company's portfolio of software tools allow scientists and engineers globally to gather/acquire data, analyze and statistically process data and present complex information. These capabilities now been further supplemented by an expanding presence of the company's software in the enterprise segment.
Due to the successful implementation of these initiatives, Cranes' revenues from its proprietary software were US$ 30 million in FY2005 from zero in FY2002. This has also enabled the company expand revenues and PAT at a CAGR of 84% and 93% respectively between FY2000 and FY2005.
The Company has made significant initiatives towards expanding its growth horizon by additionally focusing on the software requirements of the global enterprise. In this regard, it has structured its resources to derive substantial strategic value by delivering technology based applications within focus domains. The Company plans to take this initiative forward through distinctly identified business groups.
Industry recognition
Recognizing its growth achievements, Deloitte Touche Tohmatsu recently included Cranes in its Technology Fast 500 Asia Pacific 2005 program for the third year in succession. Cranes Software was also awarded the "Distinguished Application Product Company Award" by the Indian Institute of Management, Bangalore (IIMB) under the aegis of NASSCOM Product Forum. Cranes Software was judged on the basis of its product range, financial performance, senior management team, alliance partnerships and market share.
For further information, please contact :
Contact : Akila Lean (Cranes Software International Limited)
Phone : +91 80 5112 0000
Fax: +91 80 5123 1274
E-mail :
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Contact : Shiv Muttoo (Citigate Dewe Rogerson)
Phone : +91 22 4007 5036
Fax : +91 22 2284 4561
E-mail :
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About Cranes Software International Ltd. (CSIL):
Cranes Software is a global scientific & engineering products and solutions provider. The Company's business interests straddle products, services, RD in future technologies, training and high-end consultancy for engineers and scientist worldwide. Focused on the scientific and engineering community, Cranes Software has addressed the needs of a variety of customer groups ranging from large multinational companies to government, defence, educational and research institutions for over a decade.
Today, Cranes Software has its presence in 39 countries across the world and has a customer base of more than 350,000. Cranes Software also offers world-renowned solutions from reputed principals such as The Mathworks, Texas Instruments, IBM through product alliances.
With a mission statement to provide its customers the best in scientific technology and to enable its customers to define new limits, Cranes Software is setting new standards in the scientific and engineering field. For more information visit www.cranessoftware.com
Certain statements in this release concerning our growth prospects are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including government actions; local political or economic developments; technological risks; risks inherent in the Company's growth strategy; dependence on certain clients; dependence on availability of technical consultants and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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