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July 27, 2000
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|
|
| Company |
Srico Software India |
| Market Price |
Not listed |
| Lead manager |
Bajaj Capital
|
| Listing At |
Hyderabad, Delhi, Bangalore
|
| Opening/Closing |
July 27/August 2
|
| Promoters | Srinivasa Rao Mechineni, Srinivasa Rao Vala
|
| Associate Co. |
Srico Foods and Beverages, Diginet Solutions
|
| Managing Director |
Srinivasa Rao Mechineni
|
| Post-issue Stake |
70.10%
|
| Issue |
|
| Size |
Rs 15 million
|
| Price |
Rs 10
|
| On Application |
Rs 5 |
| On Allotment |
Rs 5 |
| Objective |
Setting up a software development facility at Hyderabad and marketing office in USA
|
| Business |
|
| Product |
Re-engineering of software, web enablement of legacy operations, e-commerce and Internet programming, database and system administration services
|
| Location |
Hyderabad |
| Project cost |
Rs 51.89 million
|
| Funded by |
Equity and a loan of Rs 5.66 million |
| Kensource projections |
(2001) |
| Sales |
Rs 14 million
|
| Profit |
Rs 2 million
|
| Earnings per share |
Re 0.43
|
| Forward P/E |
23
|
| Post-issue share capital |
Rs 50.17 million
|
| Return on equity |
6% |
| Comment | Small scale of operations, no strong clients, no clear growth plans. Unrealistic projections.
|
| Rating *
|
D
|
* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid
By Kensource Information Services Pvt. Ltd.
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