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

To: Mohan Marette who wrote (4208)	5/5/1999 10:47:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

SRA Systems plans to go public srasys.co.in Our Chennai Bureau 4 MAY THE CHENNAI-based Rs-60 crore SRA Systems Ltd is planning to go public with its maiden issue. The initial public offer (IPO) is expected to hit the market by the end of this finanical year or early next year. “We are considering a public issue to raise funds to meet our requirements during the year 2000-01,” V Kannan, joint managing director, SRA Systems Ltd told The Economic Times. However, he felt it is too early to comment on the size of the issue and the likely premium. It has already tied up funds for the current year. In September 1998, the company raised about Rs 8 crore by allowing Barings India Investments Ltd, part of The Netherlands-based ING Group to pick up a 23 per cent stake at a hefty premium of Rs 68 per share. While the promoters hold 40 per cent, Omron Corporation of Japan has 20 per cent in the company's Rs 4-crore share capital. The balance is with an overseas corporate body (OCB), Sonex. According to Mr Kannan, the promoters will soon increase their stake to 45 per cent through a preferential allottment and at a premium. The management is also planning to come out with employees stock option scheme (ESOP). As a result of this process, the share capital would rise to Rs 5 crore, he said. During 1997-98, the company recorded a 100 per cent growth, with turnover increasing from Rs 30 crore to Rs 60 crore. For the current year, it is aiming at a turnover of Rs 100 crore. SRA Systems, which has three software development centres in Chennai, is now in the process of expanding its operations by setting up two more development centres. Earlier, the company had announced that it would invest Rs 16 crore during 1998-2000 for additional manpower, strenthening of managment, infrastructure, hardware and software besides overseas marketing activities. The company would soon increase its number of offices in the US from three to five through its 100 per cent subsidiary, Software System Solutions Inc. It also plans to set up subsidiaries in the UK and Japan. economictimes.com