July 13, 2000
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Company |
SIP Technologies |
Market Price |
Not listed |
Lead manager |
Jardine Fleming India Securities, Cazenove India (Holdings)
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Listing At |
BSE, NSE, Madras
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Opening/Closing |
Bid - July 12/July 18, Public issue - August 1/August 3
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Promoters | K C Raghunathan, K C Sukumar, SIP Industries
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Associate Co. |
SIP Industries, Bionnics Equipment, SIP Florals
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Managing Director |
K C Sukumar
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Post-issue Stake |
61.10%
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Issue |
|
Size |
1.25 mn shares. Book Bldg - 1.125 mn shares, FP - 3.75 mn shares
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Price |
Floor Price - Rs 235
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On Application |
— |
On Allotment |
— |
Objective |
Set up marketing offices and development centers. Fund joint ventures and acquisitions
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Business |
|
Product |
Product development, software development, technology development
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Location |
Madras |
Project cost |
Rs 451.4 million
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Funded by |
Public issue and a Rs 45 million loan
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Kensource projections |
(2001) |
Sales |
Rs 204.8 million
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Profit |
Rs 76.5 million
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Earnings per share |
Rs 12.75
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Return on equity |
28% |
Comment | Relies on Sun Microsystems for 75% of its revenue. Core strength is Java technology which faces risk of obsolescence. Moreover, high quality software professionals are hard to come by
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Rating *
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B
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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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