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April 7, 2000
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Stocks
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|
| Company |
Cerebra Integrated Technologies Ltd.
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| Market Price |
Unlisted
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| Lead managers |
Canara Bank & SMIFS Capital Markets Ltd.
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| Listing At
|
Bangalore, Ahmedabad and Calcutta
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| Opening/Closing
|
April 6, 2000/April 10, 2000
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| Promoters |
V Ranganathan, K Gururaja Upadhya, Shridhar S Hegde, Mythili Kannan, V Krishan, P Vishwamurthy
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| Associate Co. |
—
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| Managing Director |
V Ranganathan
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| Post-issues Stake |
75% |
| Issue |
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| Size |
Rs 88.7 million
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| Price |
Rs 10, premium Rs 50 |
| On Application |
Rs 30 |
| Allotment |
Rs 30 |
| Objective |
Expansion of manufacturing facilities and software division, set up branch office in the US, working capital.
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| Business |
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| Product |
Personal computers, software packages, IT solutions
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| Location |
Bangalore
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| Project cost |
Rs 237.1 million |
| Funded by |
Present issue and bank loan
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| Kensource projections (2001) |
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| Sales |
Rs 900 million
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| Profit |
Rs 22.5 million |
| Earnings per share |
Rs 3.8 |
| Return on equity |
9 % |
| Comment |
Too much focus on hardware. Relative inexperience in the software business. Low margin operations. Planning a big expansion on current base. However, pre-issue institutional stake (13.8%) is a silver lining.
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| Rating *
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C
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* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid
By Kensource Information Services Pvt. Ltd.
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