Opto Circuits (India) and Microcity have filed the draft prospectus with Sebi and Net Axis Software Services is tapping the public on August 7.

Net Axis Software Services
Net Axis is offering 35 lakh shares of Rs 10 each at a premium of 10, aggregating Rs 7 crore. The IPO is lead managed by Doogar & Associates and the shares will be listed at the stock exchanges of Chennai, Hyderabad and Bangalore.

The IPO opens for subscription on August 7 and closes on August 11. The company is demanding Rs 5 on application and Rs 15 on allotment.

The company has chalked out a Rs 10.22-crore project for setting up a software development facility, developing and building web centric solutions and provide funds for the development of e-commerce and B2B solutions.

Of the project cost, Rs 2.4 crore is going towards setting up an office, Rs 3.5 crore for software and software development facility, Rs 2.19 crore for hardware, Rs 50 lakh for furniture and Rs 86 lakh for meeting working capital requirements.

Established in 1995, Net Axis had started software development in 1997 only by entering into networking activities. The company is also involved in internet applications and proliferation of ecommerce, sales automation and call centres.

At present, the company is doing data conversion for Caterpillar Inc, US. Also, it has orders worth Rs 50 lakh from Satyam Computer Services and Maxwell Info Solutions for data conversion.

For fiscal 1999, the company had recorded a gross income of Rs 1.1 crore on net profit of Rs 6.53 lakh.

On an equity base of Rs 2.89 crore, EPS worked out to just 23 paise. For the 11-month period ended March 31, 2000, gross income rose to Rs 1.48 crore and net profit increased marginally to Rs 6.86 lakh. The company has been operating on a very low margin, thanks to its low-end activities. The company had generated a return on networth of 3.63 per cent for fiscal 2000.

For the current fiscal, the company is projecting a net profit of Rs 32 lakh on total income of Rs 4 crore. The projected EPS is only 40 paise.

Opto Circuits
Incorporated in June 1992, Opto is floating a Rs 13.38-crore IPO at a premium of Rs 40. Around 26.76 lakh shares of Rs 10 each will be issued through the public issue. Lead managed by Karvy, the shares are proposed to be listed at the stock exchanges of Bangalore, Hyderabad and Mumbai.

The company, which is an 100 per ent export oriented unit, manufactures high quality and versatile opto electronic components and assemblies like infrared emitters and assemblies, infrared detectors and assemblies, photo sensors and chip on board assemblies used in manufacture of medical products, security systems and smart cards.

The company is now going in for an expansion and is setting up a marketing office in London at a cost of Rs 2 crore. The proposed equity issue is to part finance the project cost. However, the project is not apprised by any bank or financial institution.

Opto Circuits has bagged order worth Rs 32 crore which is to be executed by June 2001. The company has been promoted by first generation entrepreneurs.

The company has a strategic alliance with Elekon Industries USA Inc, Los Angeles and has clients like Agilent Technologies Inc, USA (formerly known as Hewlett Packard Inc), Criticare Systems Inc, USA, Logitech International, SA, Switzerland, Nellcor Puritan Bennett, Nonin Medical Inc, USA, Epic Medical Equipments Inc USA, etc.

Microcity (India) Ltd
Established in 1998, Microcity, a software company, is offering 56 lakh shares of Rs 10 each at par. The IPO is lead managed by Feex Securities and the shares are proposed to be listed at the stock exchanges of Mumbai and Ahmedabad.

Microcity is engaged in mobile computing and software development and now proposes to expand its existing operations and diversify into portal development.

Promoted by first-generation entrepreneurs, the project is at a very early stage of implementation. A few companies recently promoted by Microcity's promoters are yet to commence activity.

The company is planning to set up liaison offices in USA, UK and Singapore at a total cost of just Rs 89.63 lakh. The company seems to be optimistic as far as estimating the cost of setting up these offices is concerned. As part of its diversification, Microcity plans to develop a portal and host it on the web for e-business. Total cost of the portal development is estimated at Rs 1.75 crore.

Of the project cost, Rs 3 crore is earmarked for acquiring premises and Rs 3.14 crore for hardware, furniture, misc fixed assets, air conditioning and motor vehicles.

The company does not have any marketing tieup and is yet to recruit a majority of the manpower requirement of the proposed projects. Ahead of the IPO, the company had declared a 1:1 bonus.