Intel picks up stake in Ritechoice Tech

CHENNAI, SEPT 15: Global computer giant Intel has picked up 20-25 per cent equity stake in a city-based software company Ritechoice Techn...

CHENNAI, SEPT 15: Global computer giant Intel has picked up 20-25 per cent equity stake in a city-based software company Ritechoice Technologies.

When contacted Ritechoice officials confirmed the deal with Intel Pacific, but refused to give details of the amount invested or the stake taken by the multinational.

Market sources indicated that Intel Pacific was picking up 25 per cent stake in the software company specialising in enterprise solutions for stock brokerage houses in India. They said the global giant was reportedly investing about Rs 1.8 crore to pick up equity.

Despite repeated attempts, the Intel spokesperson could not be contacted in Bangalore while Ritechoice officials said they could not disclose details of the deal as per clauses of their agreement with the computer giant.

quot;The Intel investment helps us position ourselves to ride the current market wave for stock brokerage solutions through pumping in money to strengthen our presence in key geographic locations,quot; Ritechoice chief executive S Rangarajan said.

He also indicated that the current investment would be used to extend the company8217;s product range as well as to consolidate Ritechoice8217;s market and support infrastructure in Mumbai.

Intel South Asia director Atul Vijaykar said in a press statement that his company8217;s investment in Ritechoice reflects its commitment to improve business efficiency by supporting adoption of electronic-business solutions in financial sector.

Story continues below this ad

Ritechoice has successfully implemented back-office clearing and settlement systems for the Madras Stock Exchange as well as the recently set up interconnected stock exchange at Vashi in Navi Mumbai.

The company, which is an alliance partner of IBM for the securities industry in India, is also considering an employee stock option scheme ESOP for its employees, sources said.

Rangarajan said as the capital markets in India grow in depth and sophistication on the back of persistent government efforts to reform the bourses, Ritechoice expects to see a dramatic increase in technology use in this segment.

The company is now planning to invest in new web-based technologies and extend this product to enable its brokerage clients to offer access through internet to their retail investors for both account inquiry and transactions. It has also firmed up plans to integrate its Spectrum 2000 product with IBM8217;s integrated trade management system, an on-line equity trading and routing product.