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Home > Money > Stocks > IPO Center > IPO Analysis
September 25, 2000
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 Company  Essel Software & Services
 Market Price  Not listed
 Lead manager  Aryaman Financial Services
 Listing At  Hyderabad, Ahmedabad
 Opening/Closing  September 25/October 3
 Promoters  Sridhar Narra, Srinivasa Rao Narra, Srinivasa Rao Chagarlamudi
 Associate Co.  None
 Managing Director  Sridhar Narra
 Post-issue Stake  70.63%
 Issue  
 Size  Rs 16 million
 Price  Rs 10
 On Application  Rs 5
 On Allotment  Rs 5
 Objective  Fund software development project, set up overseas offices
 Business  
 Product  Application software, consultancy
 Location  Hyderabad
 Project cost  Rs 67.5 million
 Funded by  Equity, term loan
 Kensource projections  (2001)
 Sales  Rs 17 million
 Profit  Rs 0.60 million
 Earnings per share  Re 0.11
 Forward P/E  92
 Post-issue equity  Rs 63 million
 Return on equity  2%
 Comment Late entrant in the software jungle, likely to get swallowed by competition. Already has high discounting.
 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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