|
|
Company |
Virinchi Consultants |
Market Price |
Not listed |
Lead manager |
BoB Capital Markets
|
Listing At |
Hyderabad, Bombay
|
Opening/Closing |
August 9/August 14
|
Promoters | Vishwanath Kompella, A P Srinivasa
|
Associate Co. |
None
|
Managing Director |
Vishwanath Kompella
|
Post-issue Stake |
70.83%
|
Issue |
|
Size |
Rs 57 million
|
Price |
Rs 19 (face value Rs 10, premium Rs 9)
|
On Application |
Rs 10 |
On Allotment |
Rs 9 |
Objective |
Setting up of a software development center, development and marketing of web based applications, offices in the US and Malaysia
|
Business |
|
Product |
Business-to-business (B2B) E-commerce applications, Portal hosting, offshore development, IT consulting, Infrastructure consulting
|
Location |
Hyderabad |
Project cost |
Rs 229.50 million
|
Funded by |
Equity and Rs 20 million loan from Global Trust Bank
|
Kensource projections |
(2001) |
Sales |
Rs 61.01 million
|
Profit |
Rs 9.5 million
|
Earnings per share |
Re 1
|
Forward P/E |
23
|
Post-issue share capital |
Rs 120 million
|
Return on equity |
7% |
Comment | Excellent top management team, clear focus. Global Trust Bank's stake is reassuring. Worth an investment but at what price?
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Rating *
|
E
|
* A=Subscribe & Hold; B = Subscribe & Watch C=Subscribe & Sell; D = Avoid; E = Buy after listing
By Kensource Information Services Pvt Ltd.
Money
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