Lead managed by Systematix Corporate Services, the shares are proposed to be listed at the stock exchanges of Chennai and Mumbai. According to a merchant banking source, big bull Ketan Parekh has picked up equity shares of Rs 10 each at a price of Rs 25 each ahead of the IPO and he will be holding a sizeable 10 per cent of the post-issue stake.

The company is also in talks with a number of institutional investors who are expected to apply for equity shares during the IPO, said the merchant banking source. The company is demanding Rs 7 on application and Rs 18 on allotment. Application should be for a minimum of 100 equity shares and in multiples of 100 thereafter.

The company has chalked out a Rs 12.34-crore project. The company is setting up an office at a total cost of Rs 2.8 crore. The company is also deploying Rs 1.52 in software and software development, Rs 2.64 crore in hardware, Rs 90 lakh in furniture and fittings and Rs 56 lakh in office and electrical equipment. Besides, the company has earmarked Rs 2.48 crore for working requirements.

The company is banking on an export order of Rs 10.25 crore. According to K Padmanabhan, managing director of Tele Data Informatics, most of these orders will be executed by the end of this year. The company is expected to bag some more orders, he added. At present, 65 per cent of its turnover comes from exports and 35 per cent from domestic market.

Tele Data Informatics is focussing on software projects execution and development of software products and tools, consultancy services and training services. The company has strengths in the development of ship related software, educational institution software and web related software.

The company has developed 17 software products which are valued at Rs 25.23 crore. These software are marketed in USA, South Africa, Switzerland, Malaysia and New Zea Land. Around 50 other products are under different stages of development. The company has entered into marketing alliance for products and services with Far East Creations, Singapore, TransCon Utility Services, USA, Age Technologies SDN, BHD, Malaysia and Inspiration Group Ltd, UK. Tele Data has also tied up with 24x7find.com for Web related software development.

For the year ended June 30, 1999, Tele Data recorded a net profit of Rs 1.01 crore on total income of Rs 2.17 crore. For the year ended April 30, 2000, the company earned a net profit of Rs 1.4 crore on total income of Rs 3 crore. For period ending June 30, 2000, the company has projected a total income of Rs 3.1 crore and net profit of Rs 1.73 crore. The projected EPS is Rs 3.43.

The company is operating on a high margin and will maintain a net profit margin of 40 per cent in future, said Padmanabhan.