The company has roped in Enam Financial Consultants and IL&FS Merchant Banking Services as lead managers to its maiden offer. The IPO is also proposed to be underwritten. The shares are proposed to be listed at Bangalore and Mumbai. The company is demanding Rs 40 on application and Rs 40 on allotment.

The company has now chalked out a Rs 13.41-crore expansion plan which is its own estimate. The project involves setting up a development center and corporate office in Bangalore, establishing a subsidiary in the US at Detroit, Michigan, setting up branch offices in Europe, Australia, Middle East and Singapore.

Of the IPO proceeds, a major portion of Rs 7.03 crore is going towards the corporate office cum development centre in Bangalore, Rs 1.77 crore for the US subsidiary and Rs 3 crore for the overseas branch offices.

The company has already set up its subsidiary in the US at Detroit, Michigan in the name of Deldot Inc at a total cost of Rs 2.64 crore. The proposed overseas branch offices are part of its marketing efforts.

The company has raised funds by placing shares to mutual funds, venture capital funds and individual investors, thanks to a severe liquidity cruch faced by the company during the first half of fiscal 2000.

The company has placed 21.22 lakh shares at a price of Rs 80, aggregating Rs 16.97 crore. At present, IL&FS Growth & Value Fund holds 5.97 per cent, Talma Chemicals 4.97 per cent, Information Technology Fund 3.98 per cent and Sara Fund 1.99 per cent of the current paid up capital of Rs 5.02 crore.

Incorporated in September, 1993, the company has been promoted by Chandrashekar and Chandrakeerthi, who are technically qualified and have exposure to the software field. Deldot started its operation by offering education and training facilities. Later on, the company diversified into assembling of personal computers and providing networking solutions. In May 1995, the company commenced operation of software products and services division and in 1997, Deldot received certification from Microsoft as its authorised training centre.

It established a software development center at Kanakapura Road, Bangalore in January 1998. In March 2000, Deldot has signed an agreement with PCDOCS Asia Ltd for the promotion of its imaging and document management solutions.

At present, Deldot offers networking solutions, data storage solutions, software solutions, imaging and document management and education and training. In networking, data storage and imaging and document management, the company acts as a value added reseller for other companies' products. The company has developed two products, SMILE and SCOPE. SMILE is an integrated web based learning environment. SCOPE is primarily a tool to communicate with the customer to help them make better-informed decisions and also as a customer support tool.

The Company currently has its banch offices in Bombay, Hyderabad, Delhi, Chennai, Cochin and Coimbatore.

For fiscal 2000, the company earned a net profit of 3.09 crore on turnover of Rs 31.61 crore. For fiscal 1999, net profit was Rs 1.18 crore on turnover of Rs 25.33 crore. As on March 31, 2000, the company's networth stood at Rs 21.84 crore.

The company derives 31 per cent of its turnover from network solutions, 43 per cent from data protection, 20 per cent from software solutions and 6 per cent from training and education.