Progeon, the BPO subsidiary of Infosys, is expected to go public when it crosses $120 million in its topline, which is expected in the next financial year.
The company is currently on track to meet the $86 million target for the current financial year, growing at 9.7 per cent for the third quarter sequentially to reach $44 million.
Akshaya Bhargava, MD & CEO, Progeon, said: "The ideal size for going public is in a broad range of $120-$180 million. We have to build deep domain knowledge, and expect traction to pick up pretty soon. The total employee base for Progeon is now at 5,600, and we expect to add another 400 in the fourth quarter."
According to industry estimates, Progeon is expected to cross the $120-million mark during FY07 and will chart its IPO plans along the line.
Citibank Venture Fund holds close to 23 per cent in Progeon and, according to Bhargava, "IPO is part of its initial plans. It is a good exit route for any VC." The timing of the IPO is yet to be worked out, he said.
These details from Bhargava have come even as he is quitting the firm for personal reasons. An Infosys spokesperson said Bhargava has expressed desire to leave Progeon and will remit office from March 1, 2006.
Amitabh Chaudhry, currently COO, will take over as MD & CEO with effect from March 2, 2006.
Infosys added that Bhargava has been associated with Progeon from its early days and has been one of the main factors for Progeon's current success.
"Amitabh Chaudhry has been associated with Progeon since early 2003 and has been responsible for building industry-leading execution capabilities withing Progeon," the statement added on the incumbent.
Added Narayana Murthy, chairman & chief mentor, Infosys: "Akshaya has led Progeon from a start-up to its current position. We wish him all the success in his future endeavours. Amitabh's role has been seminal in building the operations and solutions team at Progeon and in managing its high growth."
On the issue of a series of high-level exits from Infosys in the recent past, Nilekani, said: "The recent exits of a few of senior management executives is indeed a loss for us. They are brilliant people who have contributed significant for the growth of Infosys. However, we have built strong management capabilities in the team and we will continue to build on the resources."
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