New Delhi: Datanet Systems Ltd, formerly Datanet Corporation, is hitting the market with a Rs 3.15-crore intial public offer. The company is offering 31.5 lakh equity shares of Rs 10 each at par. The IPO will open for subscription on August 23 and will close on August 28.The IPO is lead managed by Indbank Merchant Banking Services and the shares are proposed to be listed at the stock exchanges of Bangalore, Hyderabad and Mumbai.
The company is now going in for an expansion of its activities. The company is setting up a Rs 3.6-crore project which is being part financed by Bank of India. Bank of India is extending a term loan of Rs 45 lakh and the balance Rs 3.15 crore is being raised from the public issue.
Of the project cost, a major portion of Rs 1.8 crore is earmarked as working capital requirements, Rs 80 lakh as capital expenditure, Rs 75 lakh for basic infrastructure and Rs 25 lakh as issue expenses.
The project involves expansion of Datanet activities in business process automation and computer telephony integration. The company proposes to expand its technical staff by 25 and at present, it employees 57 people.Datanet is focussed on developing technologies and solutions for the conduct of commercial transactions on communication networks.
Datanet has specialised in two technologies, namely business process automation software and computer telephony integration. The company has also developed expertise in smart card-based solutions for the banking sector and public key infrastructure-based security systems.
The company has developed core products like BPRO and Teleserver and banking solutions like BankFlow, ABB, SmartABB, SmartABB+, WebBanker, Telewebbanker, EFT, CMS+ and BPRO/SS.
The company had suffered a net loss of Rs 1.53 crore on total income of Rs 2.81 crore. However, in fiscal 2000, the company turned the corner and earned a paltry net profit of Rs 6.23 lakh on total income of Rs 4.93 crore. Hence, it is operating on slender margins and return on networth has been 0.79 per cent. The EPS for fiscal 2000 works out to just 7 paise.
However, according to BoI apprisal report, the company is expected to stage a major turnaround in the current fiscal. BoI has projected a several fold jump in turnover and net profit. Net profit is projected at Rs 1.17 crore on turnover of Rs 15.55 crore.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.