Lead managed by Karvy Investor Services, the shares are proposed to be listed at the stock exchanges of Hyderabad and Bangalore. The company is demanding the entire amount of Rs 20 on application.

The application should be for a minimum of 100 shares and in multiples of 100 thereafter.

Ahead of CS Software's IPO, mutual funds and foreign institutional investors have picked up a stake of 5.33 per cent and 6.67 per cent respectively in the company. Post-issue, their respective stake will be 4 per cent and 4.99 per cent. Promoters will hold 65.88 per cent stake after the IPO.

The company is organised as three business units catering to software development, software services and data management. For the nine-month period ended December 31, 1998, the company recorded a net profit of Rs 77.86 lakh on total income of Rs 1.14 crore. For the year ended December 31, 1999, total income zoomed to Rs 5.46 crore. In tandem, net profit shot up to Rs 1.18 crore. On an equity base of Rs 2.4 crore, this gives an EPS of Rs 4.91.

This discounts the offer price of Rs 20 by a multiple of 4. The company generates a return on networth of 25 per cent.

CS Software Enterprises is raising money for setting up infrastructure facility for software development. CS Software Enterprises has estimated the total project cost at Rs 5.2 crore.