The City-based Northgate Technologies Ltd will raise$26.50 million by way of preferential allotment of shares to fund its expansion and other capital expenditure plans. The company has decided to place 24.47 lakh shares of Rs10 each with banks and institutions at premium of Rs497.28 per share. The allotments will be made in favour of UBS Securities Asia Ltd (6.33 lakh shares). Mecquarie Bank (6.33 lakh), Copthall Mauritius Investments (5.79 lakh), India Capital Fund (4.62 lakh) and India Institutional Fund (1.38 lakh). However, the company has taken approval for raising $41 million at its annual general meeting held on Friday.

Northgate is now working on a plan to set up a $6.million server farm in Hong Kong. “We have got all the approval and we will make the farm up and running in the next four months,” Meenavalli said.