iGate Global Solutions Ltd, on Wednesday, announced that its US-based parent company has decided to delist its Indian subsidiary from the Indian stock exchanges. The company, however, will continue to be listed on the Nasdaq.

Pennsylvania-based iGate Corporation, a leading provider of global IT and BPO services, announced its intention to delist its Indian subsidiary from the Bombay Stock Exchange, the National Stock Exchange and the Bangalore Stock Exchange here on Wednesday. Under Indian laws, a company can be delisted after 90 per cent of its shares are bought back through a reverse book-building process.

The buyback price will be decided in the EGM on November 13, 2007. Currently 81.1 per cent of the Indian company is owned by the US-based parent company. Meanwhile, announcing the company’s results for the quarter ended September 2007, iGS CEO Phaneesh Murthy said, “This is a part of our capital restructuring plan. It will help us create a higher profile in North America where most of our clients come from.”

Results
iGate recorded a net profit of Rs 22.9 crore for the September quarter, up by 127 per cent from Rs 10.1 crore same quarter last year. The revenue for the September quarter was at Rs 200.8 crore compared to Rs 202.6 crore last year.

On drop in revenue Mr Murthy said, “Our revenue growth remains a concern. We have also added 3 new customers during the quarter, while the number of million dollar clients have gone up to 29 from 26 in FY 07 Q2.” The operating margins (EBITDA) improved to 15.8 per cent compared to 9.9 per cent in FY 07 Q2.