Similarly, 1.28 million shares will be allotted to retail investors on proportionate basis.

'About Rs.16 crore of the issue fund will be invested in setting up a new testing centre in Madras Export Processing Zone (EPZ) with 400 seats by 2010 to meet our expansion plans, including presence in new markets,' Thinksoft managing director A.V. Asvini Kumar told reporters here.

The company has 34 active clients spread across the US, Europe, Middle East, South East Asia and Australia.

'The global software testing services market is estimated to be $1.8 billion and $720 million in the BFSI segment. There are a few players in this domain, offering a range of testing solutions as we do,' Kumar noted.

Though IT spending remained flat in 2008, about $300 billion were invested in the BFSI sector worldwide for discretionary and non-discretionary services.

The company posted a net profit of Rs.13.88 crore over total income of Rs.92 crore in fiscal 2008-09.