Wednesday, April 20 2005 14:10 Hrs (IST) - World Time -

Bangalore: Nokia Growth Partners has invested $ 3 million in Bangalore-based telecom R&D outsourcing firm Sasken Communication Technologies to pick up an equity stake.

Sasken would not disclose the extent of dilution of stake in it. Sasken's Chairman and CEO, Rajiv Mody told a news conference new shares are being issued to the partners, a global mid to late-stage venture capital fund. Sasken became the first Nokia Growth Partners portfolio company.

The funds would head towards fuelling growth, working capital requirements and tapping opportunities in merger and acquisition (M&A) space, Mody added.

Sasken clocked $ 36.4 million in revenues in 2003-04. "We are seeing 30 to 35 per cent growth in revenues," Mody said. "Net profits will stay ahead of top-line growth".

He said that the company would come out with an Initial Public Offering (IPO) sometime this year to raise Rs 100 crore-plus.

"We are on our path towards the listing process. We are definitely looking at listing the company by the end of the year. We are in the process of filing a Red Herring Prospectus," he said.

Chief Financial Officer Neeta Revankar said promoters hold more than 50 per cent equity stake in the company, which has employee strength of 2,300, including 1,700 professionals in the wireless space.

Other investors in the company are Intel ($ 4 million) and global networking major Nortel Networks ($ 10 million).

Chief Technology Officer G Venkatesh said the company, which started operations in 1989, has filed 27 patents and five patents have been awarded.