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
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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
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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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