Americorp picks up 10% in Mascon Global

By SiliconIndia   |   Monday, 26 April 2004, 07:00 Hrs
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MUMBAI: Chennai-based software services company Mascon Global has raised $19.5 million through a 10% private placement with Americorp, a fund promoted by NRI investor Harish Fabiani, reports Economic Times.

The fund began investing in the country from 1997 and has spent about $70 million so far.

Mascon Global has been going through tough times for the last few years as the company restructured its business. The high flying company was the best paymaster in the Indian industry and during the dot com boom positioned itself as high end consulting firm.

The dotcom bust led to Mascon revenues and bottomline being hit.

Last fiscal, the company cleaned its book and wrote off Rs 121 crore in restructuring cost largely due to investments made in the dot com period. Last quarter December 31, 2003 , the company reported cash profits with revenues of around Rs 54 crore.

Chairman and CEO Sandy K Chandra said, “We are on our way to profitability this fiscal as we have removed most of the high costs that was holding the company back.”

During its restructuring, Mascon Global was one of the few Indian IT companies to cut its manpower. Particularly, the high cost manpower that the company had in US.

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