News

Indian IAD aims to raise up to $36 million for new installations

August 9, 2012

Indian IAD Accura Infotech Pvt. Ltd. is looking to raise funds that will allow it to install and operate ATMs across the state of Uttar Pradesh, per a contract the company recently landed with India's public sector banks.

According to an article at Live Mint, Accura currently is in talks with private equity firms with the goal of selling a minority stake in the company (up to 17 percent) in exchange for a cash infusion of between Rs.125 crore ($22.6 million) and Rs.200 crore ($36.2 million). Information about the talks comes from two sources close to the discussions, the article said.

Accura is one of nine companies granted contracts by India's public sector banks for the installation of third-party owned and operated ATMs throughout the country. The company landed the fourth largest of these contracts and expects to set up nearly 6,100 ATMs. The machines are to be deployed by the end of 2014.

The Live Mint report said that private equity firms in India may be hesitant to invest in the ATM scheme, however, since the operating model is unproven and contracts are not guaranteed beyond the initial term. "We may invest now but if an exit is possible later is questionable," one unidentified source told the publication.

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