Bangalore, Sep 17 - Medium IT services firm Thinksoft Global Services will raise Rs.48 crore through an initial public offering (IPO) to fund its expansion plans, including setting up a new testing centre in Chennai, a top official said Thursday.

The decade-old company provides software testing services to global clients in the banking, financial services and insurance (BFSI) vertical using the offshore model.

The Chennai-based company has development centres in Bangalore and Chennai and subsidiaries in Singapore, Germany and Australia.

The public issue of 3.65 million equity shares of Rs.10 each will open for subscription Sep 22 through the book-building route in a price band of Rs.120-130 per share.

The issue consists of 1.35 million shares and an offer for sale of 2.3 million shares by Mauritius-based venture fund Euro Indo Investments and angel investor Vinod Ganjoor.

As per the regulatory guidelines, of the total issue, 1.82 million shares are earmarked for qualified institutional bidders (QIBs), including mutual funds on proportionate basis.