The Hyderabad-based technology company Northgate Technologies Ltd plans to raise up to $41 million to fund its expansion plans and has identified five funds for the private placement issue.

UBS Securities Asia Ltd, A/C Swiss Finance Corporation (Mauritius) Ltd, Macquire Bank Ltd, Capthall Mauritius Investments Ltd, India Capital Fund Ltd, and India Institutional Fund Ltd have been identified as the allottees.

Addressing a press conference here on Friday after the company AGM, the Northgate Managing Director, Mr Venkat Meenvalli, spoke about its expansion plans and the move to raise funds and the data centre in Hong Kong to serve the Chinese market.

The data centre would be ready in the next three months.

As a part of this initiative, the company is also seeking nod for raising the FII cap up to 49 per cent of the paid-up capital of the company.

In a related development, it was decided to increase the company's authorised capital from Rs 18 crore to Rs 23 crore.

The company management, apart from deciding to offer 20 per cent dividend, would also implement Employee Stock Option Scheme (ESOP)-2006 consisting of 6 lakh equity shares of Rs 10 each to the employees of both the parent and its subsidiary companies.