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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