Hyderabad, April 8, 2003 -- Four Soft Pvt Ltd, engaged in enterprise solutions and web-centric Java technologies, plans to raise Rs 25 crore through an initial public offer (IPO) and private equity participation to fund its expansion and other development plans. The IPO is slated for July this year.
Addressing a press conference here on Monday, Four Soft's managing director Palem Srikanth said the company plans to issue 15 lakh equity shares at Rs 10 each with a premium of Rs 90 a share, aggregating Rs 15 crore and generate additional Rs 10 crore through private equity.
The company is holding talks with strategic partners and customers to raise the additional Rs 10 crore by offloading stakes to them, he said.
"The company is confident of raising the said Rs 10 crore before the July IPO," Mr Srikanth said. UTI Securities and Centrum Finance would be the lead managers of the issue, he added.
The funds would be utilised to expand its marketing network in Asia Pacific, Europe and the US.
The issue proceeds would also be utilised for enhancing the business process, infrastructure, product development and to increase sales network, Mr Srikanth said.
The company claimed that its two products Four Soft eSupply SP (service provider) and eSupply EP (enterprise provider) are the first fully web-centric enterprising operating system in the world, designed to execute comprehensive transportation and logistics activities from different locations, on a single, integrated application.
The market size of these two products, both for the supply chain management purposes, has been estimated at $250 million and $2 billion, respectively, he said.
According to him, enterprise solutions for supply-chain management were not feasible with conventional technologies of legacy systems and client server architecture.
"We are the only enterprise solutions company in the supply chain process management which has achieved end-to-end execution capability," he added. With the carried forward orders worth Rs 13 crore this fiscal, the company expects to post a revenue of Rs 5 crore in the first quarter with a sizeable profit margin.
For the year-ended March 31, 2003, the total revenue has more than doubled to Rs 7.35 crore as against Rs 3.17 crore during the same period last year. The net profit shot up to 350 per cent at Rs 3.65 crore as against Rs 10 lakh achieved during last fiscal. |
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