Vishal Information Technologies Limited, one among the first few companies to venture in the field of ITES/BPO services and a subsidiary of Tutis Information Technologies Ltd (formerly known as Amex Information Technologies Ltd), proposes to enter the capital markets on 21st July 2008 with a public issue of 27,90,000 Equity shares of Rs 10 each through 100% book building process. The Issue consists of fresh Issue of 17,90,000 Equity shares and an offer for sale of 10,00,000 Equity shares by ``Selling shareholders’’. The price band has been fixed at Rs 140 to Rs 150 per equity share of Rs 10 each. The Issue closes on 24th July 2008. The Issue will constitute 26.12% of the fully diluted Equity share capital of the Company. Credit Analysis & Research Ltd (CARE) has assigned ``IPO Grade 3’’ to the Issue. The Equity shares are proposed to be listed on BSE and NSE. Keynote Corporate Services Ltd and IDBI Capital Market Services Ltd are the BRLMs for the Issue.

IDBI Capital Market Services Ltd has invested an amount of Rs 3.72 crores in the equity Share capital of the company by subscribing to 3,10,000 Equity shares of Rs 10 each at Rs 120 per Equity share. Vishal proposes to utilize the net proceeds of the Issue to part finance the cost of the proposed expansion of the facilities in Chennai and the cost of setting up of Quality Assurance Center and Marketing office in Mumbai. The expansion includes increasing Data digitalization seats from present 250 to 450, E-publishing seats from 150 to 250 and Digital Library seats from 75 to 100. The issue proceeds would also be utilized for setting up of subsidiaries in UK and USA.

Presently the Company operates from leased facilities in Chennai and Mumbai with approximately 475 workstations. As part of the expansion plans, the Company intends to set up new facilities to support the increase in business from existing and new clients. It proposes to buy an office space of approximately 15,000 sq. ft. at Special Economic Zone (SEZ) in Chennai.

Majority of the Company’s business is predominantly sourced from the United Kingdom and United States of America through tenders floated by the various government authorities, educational institutes, etc. Presently it does not have any presence in the UK and USA which many a times acts as hindrance for getting the work allotted. It feels that its offshore presence in the form of a subsidiary company would enable Vishal’s participation in the bidding process more active and fruitful. The various other marketing activities for Vishal would also be carried out from these subsidiaries.

Vishal Information Technologies Limited , incorporated on 2nd May 1994, has expertise in the areas of data digitization, E-publishing, and digital library. The company covers almost all the range in IT enabled services other than voice call center. The Company’s consolidated PAT was Rs 12.36 crore on total income of Rs 40.88 crore for the year ended 31st March 2008. It had earned PAT of Rs 10.21 crore on total income of Rs 31.44 crores for the year ended 31st March 2007.

The Company specializes in the production of large font print files specially aimed for the visually impaired. The Company is one of the pioneers in the concept called “Digital Library for Visually Impaired and Blind” in respect of Classic series. This concept was presented to an UK based institution who promotes the causes and challenges of visually impaired and blind. This concept on E-publishing for visually impaired involves conversion of small print books to large print books and make available as ready to print PDF both in digital, talking book and print format. The UK based Institute for the Blind has estimated that about 3 million people in UK are denied from the Right to Read and Vishal is presently catering the demands for this social cause.

Basiz Fund Accounting Services Ltd (Basiz) is a Chennai-based subsidiary of Vishal Information Technologies in which Vishal holds 86.92% of shares. Basiz is a sub fund accounting and administration KPO, that primarily focuses on servicing Hedge funds, Mutual funds, Private Equity, Family offices, Insurance portfolios and managed accounts. Basiz is primarily involved in back-office function that begins once trade is struck and ends when information is sent to investors/ broker dealers. This service covers uploads, trade validation, trade processing & valuations, maintenance, quarterly results, annual activities. Basiz has received a capital investment of Rs. 8.56 crores from NEA Indo-US Venture Capital LLC, a company registered in Mauritius towards investments in equity and cumulative convertible participative preference shares on 13th June 2008.

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Disclaimer

Vishal Information Technologies Ltd is proposing, subject to market conditions and other considerations, a public issue of the equity shares and has filed the Red Herring Prospectus (RHP) with Registrar of Companies (ROC) Chennai. The RHP will be available on the websites of SEBI at www.sebi.gov.in, the websites of the Book Running Lead Managers at www.keynoteindia.net and www.idbicapital.com and the website of the Company at www.vishalinfotech.com.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The Equity Shares have not been and will not be registered under the US Securities Act (“the Securities Act”) or any state securities laws in the United States and may not be issued or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

Any potential investor should note that investment in equity shares involves a high degree of risk. For details, see the section titled “Risk Factors” of the RHP, which has been filed with the ROC.