Northgate Technologies is planning to raise funds up to $41 million through qualified institutional placement (QIP) or GDRs. Besides, the company has received the approval from its shareholders to extend ESOP schemes extended to subsidiaries.

Announcing this to the media here on Friday, after the AGM, Venkat S Meenavalli, CMD, said that the company is offering a 20% equity dividend and has proposals to raise FII investment limits to 49% from the present 24% of the total paid – up capital.

“We have decided to raise $26.5 million by way of preferential allotment of 24,47,062 equity shares of Rs10 each at a price of Rs497.28 per share to the following foreign institutional investors,” he said. Besides, it had decided to increase the authorized share capital of the company from Rs18 crore to Rs23 crore. The company also decided to implement ESOP-2006 plan consisting of 6,00,000 equity shares of Rs10 each to the employees of parent company and its subsidiaries. The company has called for another EGM on October 25, 2006 to obtain the approval of the members of the company for above mentioned purpose.

Meanwhile, the company is planning to build server forms in Hong Kong in the next three to four months with an initial investment of %5 million. “We are planning to launch USB phone in Hong Kong and Singapore by this year end, “he said adding that suppliers in China have already been identified.

Further, it is negotiating with a US-based company for a mobile VOIP and hopes to launch during the first quarter next year. It is learnt that mobile VOIP is expected to touch $200 billion by 2010 and its termed as ‘hot; market along with digital video streaming