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Home > Money > Stocks > IPO Center > IPO Analysis
November 29, 2000
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 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.

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