|
|
|
| Company |
Virinchi Consultants |
| Market Price |
Not listed |
| Lead manager |
BoB Capital Markets
|
| Listing At |
Hyderabad, Bombay
|
| Opening/Closing |
August 9/August 14
|
| Promoters | Vishwanath Kompella, A P Srinivasa
|
| Associate Co. |
None
|
| Managing Director |
Vishwanath Kompella
|
| Post-issue Stake |
70.83%
|
| Issue |
|
| Size |
Rs 57 million
|
| Price |
Rs 19 (face value Rs 10, premium Rs 9)
|
| On Application |
Rs 10 |
| On Allotment |
Rs 9 |
| Objective |
Setting up of a software development center, development and marketing of web based applications, offices in the US and Malaysia
|
| Business |
|
| Product |
Business-to-business (B2B) E-commerce applications, Portal hosting, offshore development, IT consulting, Infrastructure consulting
|
| Location |
Hyderabad |
| Project cost |
Rs 229.50 million
|
| Funded by |
Equity and Rs 20 million loan from Global Trust Bank
|
| Kensource projections |
(2001) |
| Sales |
Rs 61.01 million
|
| Profit |
Rs 9.5 million
|
| Earnings per share |
Re 1
|
| Forward P/E |
23
|
| Post-issue share capital |
Rs 120 million
|
| Return on equity |
7% |
| Comment | Excellent top management team, clear focus. Global Trust Bank's stake is reassuring. Worth an investment but at what price?
|
| Rating *
|
E
|
* A=Subscribe & Hold; B = Subscribe & Watch C=Subscribe & Sell; D = Avoid;
E = Buy after listing
By Kensource Information Services Pvt Ltd.
Money
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