Mumbai, June 16: Chennai-based Kashyap Radiant Systems is offering 57 lakh equity shares at Rs 10 each aggregating Rs 5.70 crore. Interestingly, at an annualised earning per share of Rs 2.41 for the five-month ended February 1999, the price-earning multiple works out to a low of 4.15. Against this, almost all the software issues which are currently lined up to go public, command P/Es in the range of 10 to 20.
As a clear deviation from the recent trend when most of the software IPOs hitting the market preferred to list on the smaller regional exchanges, KRS will be listed on the stock exchanges at Mumbai and Chennai. The issue is being lead managed by Ind Global Financial Services.
However, of the Rs 5.70 crore issue, the net offer to the public is limited to only Rs 14.3 lakh shares, with 18.5 lakh shares reserved for banks/mutual funds/domestic financial institutions and FIIs/NRIs/OCBs each and another 57 lakh shares for the employees of the company.
Radiant Systems Inc of USA is one of the promotersof the company. Post-offfer, the promoters would hold a 45 per cent stake in the company's Rs 11.66-crore equity.
While DFIs/MFs and NRIs/FIIs would hold 18 per cent each in the company, post-offer employee holding would be limited to 5.5 per cent. Public holding will be limited to around 13 per cent only.
According to the draft offer document filed with the Securities and Exchange Board of India, the public offer is mainly aimed at financing the company's expansion projects estimated at Rs 10 crore. While Rs 5.70 crore is likely to come through the IPO route, promoters are bringing in Rs 1.60 crore. The balance Rs 2.70 crore is being financed by IDBI in the form of a loan to the company.
The current project of the company envisages setting up of two ERP training cum software development centres- one each in Bangalore and Chennai.
This apart, the company also plans to set up eight (non-ERP) education and training centres at different locations in south India.
During the five-month period endedFebruary 1999, KRS earned a net profit of Rs 42.76 lakh from a total income of Rs 1.95 crore. During the last five years, the company has shown a compounded annual growth rate of around 55 per cent.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.