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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (6650)	9/10/1999 1:48:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Fortune Informatics IPO clocks massive oversubscription of 40 times Source : MI Sep 10, 1999, 8:24:52 AM After Polaris, it's now the turn of Fortune Informatics, which has clocked a massive over- subscription. Though a small public float of Rs 2.10 crore, the issue has been oversubscribed 40 times. The company has collected Rs 84 crore in the process from investors' whose appetite for software scrips appears unsatiated. However, according to market sources, the collection figures are still being calculated and it would take some more time to arrive at the final figure. Through its public offering, FIL had offered 21,00,000 shares at Rs 10 each. Of the total number of share that were on offer, 1.50 lakh shares and one lakh shares were allotted to Reliance Capital Mutual Fund and Karvy Investor Services on firm allotment basis. The main objects of FIL's issue are to part finance the cost of expansion of software development centre and to set up an overseas marketing office at Chicago. The total project cost is estimated at Rs 7 crore of which Rs 2.10 crore is being financed through the public offering, Rs 90 lakh through a term loan from APIDC and the balance Rs 4 crore from the promoters of the company. The FIL issue, which was lead managed by Karvy Investor Services, had opened on August 28 and closed on September 4. The shares are to be listed on the stock exchanges at Hyderabad and Calcutta. FIL's software expertise lies in the area of e-governance. Its flagship product 'Papyrus' is a detailed document management system that has been optimized for Windows environment. Papyrus includes workflow, document imaging, text retrieval, document management and control, optical storage etc. The product, launched in January 1999, is already in use by a number of FIL's clients including Siemens, L &T, LIC and RBI. At present, the company is in the process of implementing an RBI project, which envisages connecting all its regional offices (16 in number) through a common network. FIL is also working on two state government sponsored AIDS awareness projects, one by AP and the other by Maharashtra, with plans to put up interactive voice response units for use by the public. Last year, the company had implemented the Andhra Pradesh government's plans to make the land registration process on line throughout the state. In the process, the company networked 214 offices of sub-registrars for land documentation. Within a year, the project has proved to be one of the most popular initiatives of the technology savvy chief minister of the state. Post issue, the promoters and their associates would hold 66.50 per cent of the total Rs 7.17 crore equity compared to the present 93.14 per cent. While the public holding will be limited to 25.82 per cent, Fortune Foundation (the employees' trust) would hold 4.19 per cent.