To: Mohan Marette who wrote (4847 ) 7/1/1999 1:25:00 PM From: Mohan Marette Respond to of 12475
IPO News:Hughes Software Systems (India) offers 26% pie to public Hughes Home Pagehssworld.com (Thursday, July 1, 1999) Abhijit Das & Baiju Kalesh in Mumbai Delhi-based Hughes Software Systems Ltd, a subsidiary of Hughes Network Systems, US, is planning to come out with a public issue. The company is planning to offer about 26 per cent of its stake in the company to the public. Sources close to deal affirmed that Kotak Mahindra had been appointed as the lead managers to the issue. The details of the issue size and pricing could not be ascertained and the offer document is being drafted. The company has yet to submit the document to the Securities and Exchange Board of India (Sebi). A faxed questionnaire sent to the company went unanswered as the entire top management is presently in the US for the company's board meeting. According to sources, the company has already given the green signal to the initial public offer on June 25. Hughes Software was initially set up as 51:49 joint venture with Escorts. Hughes then bought over the 49 per cent Escorts holding in the company to make it a 100 per cent subsidiary. Hughes Software Systems, is a 100 per cent export-oriented unit with a major chunk of its business coming from the US markets. The company also has operations in Europe and Asia. It is entering the capital market to fund its huge export orders. The company mainly focuses on real-time embedded software development in network management systems, digital cellular working, and satellite communications. To meet all its networking operations, the company has a 128 kbps satellite link that facilitates world-wide communications. Hughes also offers solutions for enterprise networking, Internet/intranet solutions for diverse customer base. In addition to this, the company has also developed certain test and measurement tools. These include Expoze, a productivity tool for automated software testing; Packet Generator, a test and measurement tool for testing network components; and Object-Oriented Technology, a COBRA-based network management and mobile applications software.