|
|
|
| Company |
V & K Softech Limited
|
| Market Price |
Not listed |
| Lead manager |
Fedex Securities |
| Listing At |
Hyderabad, CSE and BSE
|
| Opening/Closing |
29th November / 4th December |
| Promoters |
Mohan Prasad Polavarapu, Jagdeeshwar Reddy Kalgiri, Krishna Yellamanchili, G. Anjaneya Reddy, Harnath Babu P, Ramesh A, Uday Kiran, P Venkata Shyam Prasad.
|
| Associate Co. |
K & M Softech Inc. U.S.A, ASP Networks Inc, U.S.A,
|
| Managing Director |
Mohan Prasad Polavarapu |
| Post-issue Stake |
27.86%
|
| Issue |
|
| Size |
Rs.37.5 million |
| Price |
Rs 10 |
| On Application |
Rs 5 |
| On Allotment |
Rs 5 |
| Objective |
To setup software development centre in Hyderabad, to invest in subsidiaries in U.S.A and Cannada, to meet margin money requirement for working capital. |
| Business |
|
| Present |
Providing solutions in Wireless Application Protocol, Web Product and Package Selling, Internet/Intranet Solutions and E-Commerce Solutions. |
| Proposed Project
|
Setting up software development centre in Hyderabad, Investment in subsidiaries in U.S.A and Cannada, Meeting margin money requirement for working capital. |
| Location |
Hyderabad |
| Project cost |
Rs.114.95 million |
| Funded by |
Promoters and Promoters group Equity (24%), Promoters friends & Relatives Equity (30%), Public Equity (33%), Internal Accruals (3%), Term Loan from Bank of Madura (10%).
|
| Kensource projections |
(2001) |
| Sales |
Rs 40 million |
| Profit |
Rs 8 million |
| Earnings per share |
Re 0.70 |
| Forward P/E |
12 |
| Post-issue equity |
Rs 100.5 million |
| Return on net worth |
8% |
| Comment |
Dot com businesses are crumbling, WAP is at a nascent stage, associate companies are into similar activities, future is vague. |
| Rating *
|
D
|
* A=Subscribe & Hold; B = Subscribe & Watch; C=Subscribe & Sell; D = Avoid; E = Buy post-listing
By Kensource Information Services Pvt Ltd.
Money
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