Hyderabad, April 7, 2003 -- Four Soft, a city-based supply chain management software solutions provider is planning for an initial public offer (IPO) of 15 lakh equity shares at a tentative price of Rs 100 per share to raise about Rs 15 crore.
However, the exact price will be decided shortly in consultation with the lead managers to the issue, UTI Securities and Centrum Finance. The issue is expected to open for subscription in July this year.
The company also plans to raise another Rs 10 crore through a private placement offer to its customers and strategic partners.
Announcing this at a press conference here today, Palem Srikanth, the managing director of the company said that the issue proceeds would be utilised to enhance the company's international marketing network in Asia-Pacific, Europe and US, business processes, infrastructure, product development and to increase its global sales network.
“The promoters of the company themselves have recently subscribed to the shares of the company at a price of Rs 60 and with the fundamentals of the company expected to imrove significantly in the ensuing years, we think it is a reasonable price for the investors,” Kamlesh Gandhi, the executive director of Centrum Finance, said trying to justify the issue price of Rs 100.
The company posted a net profit of Rs 2.89 crore on a total turnover of Rs 7.35 crore for the year ended March 31. It has developed two flagship products - eSupply (service provider) and eSupply (enterprise).
While the first product is a web-centric enterprise operating system designed to execute comprehensive transportation and logistic activities from different locations, the second product fulfils both the operating and financial information needs of companies involved in manufacturing, distribution and trading.
“Last year was a good one for us with both our products finding major clients such as S-Net Global of Singapore, Century Logistics of Malaysia and Eaagle and Frank-lin Distilleries of US,” Srikanth said.
Suresh C Rajpal, a director the company, said that about Rs 13 crore worth of orders were brought forward to the current year from the previous year.
The ompany expects to clock a turnover of Rs 5 crore during the current quarter. |
News Releases