The company is demanding Rs 2.5 on application and Rs 7.5 on allotment. Promoters and their friends are picking up 29.78 lakh shares of the company at a premium of Rs 5. Also, the promoter group is picking up 1.60 lakh equity shares at par.

The company has reserved 10 lakh equity shares at par to OCBs/FIIs/NRIs, 5 lakh shares at par to mutual funds and financial institutions, 3 lakh shares to its employees and 2 lakh shares to Ashika Credit Capital Ltd which is the lead manager to the issue.

The issue proceeds will be used for setting up web portal and e-commerce shopping mall; upgradding existing hardware and software and install latest equipment for facilitating e-commerce and web-based businesses with supportive payment gateway; and marketing and developing brand.

The issue proceeds will also be used for meeting working capital requirements. The project has been apprised by Oriental Bank of Commerce which is advancing a term loan of Rs 1.2 crore towards the project.

The company will be deploying Rs 3.78 crore in portal development, Rs 3.88 crore in promotional activities, Rs 2 crore in setting up an office building and Rs 71 lakh in hardware. Of the issue proceeds, Rs 1.17 crore is earmarked as working capital requirements.

Incorporated in May, 1999 as Net Trade Innovations, the company rechristened itself to Hifunda.com in February 2000. Hifunda has been promoted by Vijay Jain and SK Sultania. The promoters do not have any exposure to portal development.

For fiscal 2001, OBC has projected a net profit of Rs 59 lakh on turnover of Rs 4.7 crore. However, the company's projected EPS is just 40 paise. The projected return on networth is 4.43 per cent.