Hyderabad, October 16, 2003 -- With strong support from UTI Venture Fund and Andhra Pradesh Industrial Develop-ment Corporation (APIDC), Four Soft Ltd, a software product company, has proposed to raise Rs 20 crore to fund its future expansion plans.
The company has proposed to come out with an initial public offer (IPO) at Rs 5 a share with a premium to raise Rs 20 crore in the next two months. Four Soft will be filing the prospectus with Securities and Exchange Board of India (Sebi) in the next two to three days.
When contacted, Four Soft Ltd managing director Palem Srikanth confirmed that the company is going for an IPO soon. He said that the fund raising is basically to expand its operations in the US, set up new overseas offices, increase manpower and infrastructure, and acquire small companies.
Further, UTI Venture Fund and APIDC have picked up equity in the company to the tune of Rs 8 crore. UTI invested Rs 7 crore and APIDC put in Rs 1 crore, Mr Srikanth said.
The company feels that the proposed fund raising would help it grow further as its two products eSupply-SP and eSupply-EP have huge potential in the global markets with a market size of $2.5 billion. The company is facing competition from the likes of SAP, EXE and ManagerDesk of the US and FWL of the UK for its two products.
While e-Supply SP is a complete end-to-end ERP for transportation, logistics and 3PL companies, eSupply-EP enhances efficiencies of supply chain process management of manufacturing and distribution businesses. According to Srikanth, the company has also proposed to enhance its manpower to 200 from the existing 130 professionals in the next 12 months. Four Soft would also add another 10,000 sq ft area during the period, he added.
The company, which has been making profits, is expected to more than double its revenue to Rs 15 crore for the current fiscal. The net profit too was expected to double to Rs 9 crore as compared to last fiscal's Rs 4.2 crore, he said. |
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