Issue priced at Rs 25 per share of Rs 5 each
Highlights
- IPO opens on Monday, February 16, 2004 and closes on Monday, February 23, 2004.
- IPO to comprise issue of an aggregate of 79,50,000 fresh equity shares of Rs 5 each.
- Issue at a premium of Rs 20 per share, aggregating Rs 19.875 crores.
- Proceeds of the issue to be utilized in setting up an international marketing network, fund inorganic growth initiatives, expand existing facilities and to meet product development and R&D expenses.
- Issue to be listed on The Stock Exchange, Mumbai and National Stock Exchange of India Limited. About 33.5% of the enhanced equity to be offered in the IPO.
- UTI Securities Limited is the Lead Manager to the issue, Centrum Finance Limited is the Co-Lead Manager to the issue, while Karvy Consultants Limited is the Registrar to the issue
Hyderabad, February 11, 2004 -- Four Soft Limited, an existing profit making and dividend paying company engaged in the business of product development and sale of web-centric Enterprise Wide Solutions for the Supply Chain services industry, is tapping the capital market by making a fresh issue of 79,50,000 equity shares of Rs 5 each for cash at a premium of Rs 20 per share aggregating Rs 19.875 crores. The company's paid up equity share capital would increase from the current Rs 11.89 crores to Rs 15.86 crores after the equity issue.
Four Soft will use the IPO proceeds to set up an international marketing network, to fund inorganic growth initiatives, to expand its existing facilities, and to meet the company's product development and R&D expenses. The equity shares will be listed on The Stock Exchange, Mumbai and the National Stock Exchange of India Limited.
Founded in December 1999 by Palem Srikanth Reddy, MS, Stanford University, Four Soft's board of director includes some of global business personalities like Koh Boon Hwee, Chairman, Singapore Airlines, David Ian Beatson, ex-Chairman, Circle International Group, a $900 million transportation & logistics company, Douglas Terence Ash, Chairman, Global Freight Exchange (GF-X) and Suresh Rajpal, CEO, Technova Global and Walter J. Sousa Jr. ExChairman & CEO AT&T Asia Pacific among others.
Commenting on the IPO, Palem Srikanth Reddy said, "We are very confident that the market would respond positively to our company and the business that we are in. Our business model enables us to scale up rapidly and provide solutions to various players. Given the nature of the business space that we occupy, and the strength of our Board, investors can be certain of investing in a dynamic, strong, focused and growth-oriented organization."
Four Soft presently employs over 140 personnel. Its operating revenue has grown from Rs 6.5 lacs in FY2000 to Rs 732 lacs in FY2003 and Rs1043 Lacs for nine months ended 31st December 2003. Four Soft is a consistent profit and dividend paying company since inception. Its net profit grew from approximately Rs 2 lacs in FY2000 to Rs 288 lacs in FY2003 and Rs 563 Lacs for nine months ended 31st December 2003.
After the IPO, the promoter group's stake would reduce to 49.39% from the present 65.91%. Similarly, employees and ESOP holders would hold 5.54% as against 7.38% stake now, while venture funds and others would have a 20.01% stake against 26.71% now. The public stake in the post-IPO equity of Rs 15.86 crores would be 25.06%.
The IPO opens for subscription on Monday, February 16, 2004 and closes on Monday, February 23, 2004. UTI Securities Limited is the Lead Manager to the issue. Centrum Finance Limited is the Co-Lead Manager to the issue, while Karvy Consultants Limited is the Registrar to the IPO.
About Four Soft Limited
Incorporated in 1999, Four Soft Limited focuses on the development of software products and consultancy services for Supply Chain Process Management in the domain area of Logistics Solutions for the global marketplace. While focusing on the development of software products for Supply-Chain Process Management, Four Soft offers software development and consultancy services in the same field of Supply Chain Process Management in the global marketplace.
Four Soft launched the first software product eSupply SP in 2001 and the product eSupply EP is under implementation and expected to go live in September 2004. These products are web-centric enterprise applications for Supply Chain Process Management and are based on the J2EE technology. Four Soft currently operates in the European, Asia-Pacific, and North American markets. It is in the process of setting up subsidiaries in these markets. |
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