Infopark eyes IPO, big expansion

INFOPARK is making its way into the big leagues. In an ambitious move, the IT park is eyeing an initial public offering (IPO) that will help raise funds for its growth, besides ensuring greater visibility.

- ANU KURUVILLA AND KRISHNAKUMAR K E @Kochi

According to sources, the IPO, which will make Infopark the first Kerala government entity to list on the stock exchanges, might probably happen once the Phase III and IV projects are completed. As part of the IPO road map, the IT park has decided to register itself as a company.

“We have been functioning as a charitable society till now. However, this structure doesn’t give us the flexibility needed for future ventures. Even the Central Board of Direct Taxes (CBDT) has long taken a position that IT parks are not charitable societies. So, the immediate step is to register Infopark as a company,” said a source. Also, a company structure is needed to get into joint ventures, the source said.

“If Infopark plans to go IPO in the future, it will need a corporate structure. The shift to a corporate structure will help get a positive difference in taxes,” said the source.