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July 21, 2000
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|
| Company |
Lanco Global Systems |
| Market Price |
Not listed |
| Lead manager |
Lanco Group
|
| Listing At |
Ahmedabad, Bombay, Hyderabad
|
| Opening/Closing |
July 21/July 26
|
| Promoters | Lanco Group
|
| Associate Co. |
Lanco Construction, Lanco Industries, Lanco Kondapalli Power, Kalahasthi Castings, Lanco Project, Lanco Solutions, Lanco Global Systems Inc, Lanco Net, Lanco Leasing & Finance, Lanco Steel |
| Managing Director |
L Madhusudan Rao
|
| Post-issue Stake |
65.65%
|
| Issue |
|
| Size |
Rs 26.7 million
|
| Price |
Rs 10
|
| On Application |
Rs 5 |
| On Allotment |
Rs 5 |
| Objective |
Setting up a Software Development Center for web-based applications and consultancy, acquire a software company in the US, set up office in New Jersey
|
| Business |
|
| Product |
Software services, Internet solutions, networking and systems integration
|
| Location |
Hyderabad |
| Project cost |
Rs 118.57 million
|
| Funded by |
Mainly equity and a term loan of Rs 12 million |
| Kensource projections |
(2001) |
| Sales |
Rs 50 million
|
| Profit |
Rs 9 million
|
| Earnings per share |
Re 0.84
|
| Forward P/E |
12
|
| Post-issue share capital |
Rs 106.57 million
|
| Return on equity |
8% |
| Comment | Poor disclosures. 42% stake to be held by Lanco Solutions Inc. which is a loss-making company with huge borrowings to be used for investment!
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| Rating *
|
D
|
* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid
By Kensource Information Services Pvt. Ltd.
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