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| Company |
Globsyn Technologies |
| Market Price |
Unlisted |
| Lead managers |
Karvy Investor Services, UTI Bank |
| Listing At |
Delhi, Calcutta, BSE and NSE |
| Opening/Closing |
Book bldg: February 13/February 20 |
| Promoters |
Bikram Dasgupta |
| Associate Co. |
Globsyn Technologies Incorporated |
| Managing Director |
Bikram Dasgupta
|
| Post-issue stake |
27.60 %
|
| Issue |
|
| Size |
Rs.218.34 million |
| Price |
Rs. 40 (Face value Rs 10, premium Rs 30) |
| On Application |
Rs 40 |
| On Allotment |
— |
| Objective |
Setting up marketing, instructional R&D and software development centre, invest in wholly owned subsidiary in the US, expansion of existing infrastructure facilities |
| Business |
|
| Present |
Software Services, e-consulting and high-end software education.
|
| Proposed Project
|
Set up marketing, instructional, R&D centre, invest in the US subsidiary, set up subsidiary in the UK, upgrade and expand existing infrastructural facilities. |
| Location |
New Delhi
|
| Project cost |
Rs 172.81 million |
| Funded by |
Equity (85%) and internal accruals (15%) |
| Kensource projections |
(2001) |
| Sales |
Rs 170 million |
| Profit |
Rs 27 million
|
| Earnings per share |
Rs.12.46
|
| Forward P/E |
3 |
| Post-issue equity |
Rs 218.3 million |
| Return on net worth |
3%
|
| Comment |
Sales and profit growth is slowing down. RONW wil drop to 3%. What justifies the expansion? But, the forward P/E is quite low, so a liquidity-driven price rise cannot be ruled out |
| Rating *
|
E
|
* A=Subscribe & Hold; B = Subscribe & Watch; C=Subscribe & Sell; D = Avoid; E = Buy post-listing
By Kensource Information Services Pvt Ltd.
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