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Home > Money > Stocks > IPO Center > IPO Analysis
August 7, 2000
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 Company  Net Axis Software Services
 Market Price  Not listed
 Lead manager  Doogar & Associates
 Listing At  Madras, Hyderabad, Bangalore
 Opening/Closing  August 7/August 11
 Promoters P Jeya Kannan, V Sathiya Jayaram, K Ravindranath, R Ravi
 Associate Co.  None
 Managing Director  P Jeya Kannan
 Post-issue Stake  56.25%
 Issue  
 Size  Rs 70 million
 Price  Rs 20
 On Application  Rs 5
 On Allotment  Rs 15
 Objective  Expansion
 Business  
 Product  Software development, Services and in-house training
 Location  Madras
 Project cost  Rs 102.20 million
 Funded by  Equity
 Kensource projections  (2001)
 Sales  Rs 28.50 million
 Profit  Rs 2 million
 Earnings per share  Re 0.25
 Forward P/E  80
 Post-issue share capital  Rs 131.10 million
 Return on equity  2%
 CommentThe premium is way out of line. At this price the company has a forward P/E of 80. Profit margins are pathetic. Plus, the company faces fierce competition in its area of operation.
 Rating *  D

* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid

By Kensource Information Services Pvt Ltd.

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IPO Analysis

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