Quatrro eyes stake sale, seeks FIPB clearance

Quatrro BPO Solutions has filed an application to the Foreign Investment Promotion Board (FIPB) for issuing shares to raise funds, according to a person familiar with the development.

The quantum of funds to be raised or the investor names could not be ascertained immediately. “We are seeking an approval, it is too premature to comment on anything right now,” chairman Raman Roy told DNA.

Quatrro has been looking to raise around $300-400 million to add to its war chest for acquisitions in verticals such as legal, healthcare and insurance.

It has already lined up, and has commitment of, about $300 million from investors, which can be increased depending on the target company. It is also close to finalising an acquisition valued at more than $100 million. However, details on the target firm were not available.

Last year, Quatrro, and D E Shaw Group paid $100 million for online gaming and interactive entertainment services provider Babel. The deal was funded through a mix of debt and equity.

D E Shaw invested in Quatrro when the two firms acquired Babel, for a “low single-digit stake”. 

Privately-held Quatrro was expecting sales of $100 million for last year. Management currently holds a majority stake in the company. Olympus Capital is a significant minority investor with its investment of $100 million.