April 7, 2000
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Stocks
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|
Company |
Cerebra Integrated Technologies Ltd.
|
Market Price |
Unlisted
|
Lead managers |
Canara Bank & SMIFS Capital Markets Ltd.
|
Listing At
|
Bangalore, Ahmedabad and Calcutta
|
Opening/Closing
|
April 6, 2000/April 10, 2000
|
Promoters |
V Ranganathan, K Gururaja Upadhya, Shridhar S Hegde, Mythili Kannan, V Krishan, P Vishwamurthy
|
Associate Co. |
—
|
Managing Director |
V Ranganathan
|
Post-issues Stake |
75% |
Issue |
|
Size |
Rs 88.7 million
|
Price |
Rs 10, premium Rs 50 |
On Application |
Rs 30 |
Allotment |
Rs 30 |
Objective |
Expansion of manufacturing facilities and software division, set up branch office in the US, working capital.
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Business |
|
Product |
Personal computers, software packages, IT solutions
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Location |
Bangalore
|
Project cost |
Rs 237.1 million |
Funded by |
Present issue and bank loan
|
Kensource projections (2001) |
|
Sales |
Rs 900 million
|
Profit |
Rs 22.5 million |
Earnings per share |
Rs 3.8 |
Return on equity |
9 % |
Comment |
Too much focus on hardware. Relative inexperience in the software business. Low margin operations. Planning a big expansion on current base. However, pre-issue institutional stake (13.8%) is a silver lining.
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Rating *
|
C
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* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid
By Kensource Information Services Pvt. Ltd.
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