New Delhi: Fourth Generation Information Systems Limited, a Hyderabad based company is coming up with its first public issue of 47.5 lakh equity shares of Rs 10 each for cash at par. Lead managed by Fedex Securities Limited, the company plans to raise Rs 475 lakhs through the IPO. Issue proceeds will be used to expand their existing software development facilities at Hyderabad, modernisation of hardware ang software, product development, R&D activities, along with meeting the issue expenses. The project has been appraised by Bank of Madura, which will also part finance the project with a term loan of Rs 135 lakhs.The company was incorporated in August 1998 and became public in March this year. It aims to undertake designing and development activities in software systems, products and solutions in areas including web-to-wireless, internet, intranet, websites, enterprise resource planning, e-commerce, etc both for Indian and export markets. The company also proposes to take up software and hardware training, consultancy, design and development of management information systems. The company has a product called `SmartDoctor' product suite, which has an existing customer base of about 20 hospitals.
Mr Chalapthi Rao Atluri,the chairman of the company, has eight years of experience in the IT industry. The incomes of the company during the last two financial years have been Rs 16.64 lakhs and Rs 201.67 lakhs, while the profits during the same periods have been Rs 1.37 lakhs and Rs 31.65 lakhs. The company has made investments worth Rs 21.35 lakhs in research and development of the SmartDoctor product suite. Company's weighted average earnings per share for the last two years is Rs 67.06 and return on net worth is 32.69 per cent.
Shares are proposed to be listed on the Hyderabad and Mumbai Stock Exchanges.
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