|
5th
July, 2000: RECURSION SOFTWARE LIMITED
We wish to
cross the 50000 subscriber mark ASAP.
Please recommend this to you some one you
know
Our
recommendation: Invest and then watch
Why:
| • |
A
long, stable and relatively good
history |
| • |
Promoters
are qualified, experienced and
focused |
| • |
The
downside, in our view is, Rs. 8
and upside can be Rs. 20. |
| • |
Most
of the shares are with the
promoters |
| • |
The
Company has acquired dexterity in
handling large and complex
projects |
Caution:
| • |
Looks
to be a conservative lot. So,
growth could be slow |
| • |
Since
25 % will be with the public
coupled with a small equity base,
there could be liquidity |
Other
details:
| • |
Public
issueof 10 lac equity shares at
Rs. 10 each totaling Rs. 100 lacs |
| • |
Issue
opens on Thursday. 6th July, 2000
and closes on Thursday, 13th July
2000 |
| • |
On
application Rs. 5 and on allotment
balance Rs. 5 |
To
list the shares of the Company on the
Stock Exchanges at Hyderabad and Bangalore
| • |
There
is no outstanding litigation
against the Company |
| • |
Recursion
Software Limited was incorporated
on July 3, 1989 as Recursion
Software Consultants Private
Limited |
| • |
For
more salient features, click on to
http://www.soffina.com/si_ipo/index.htm |
Shareholding
pattern of the Company
| Entity |
Pre-Issue |
Post-Issue |
| |
No
of Shares |
% |
No.
of Shares |
% |
| Promoter
group |
25,44,000 |
100.00 |
29,34,000 |
74.58% |
| Financial
Institutions / Investment
Institutions / Banks |
- |
- |
0.30 |
0.19 |
| Public |
- |
- |
10,00,000 |
25.42% |
| Total |
25,44,000 |
100.00 |
39,34,000 |
100.00 |
| |
|
|
|
|
Cost
of the Project
| PARTICULARS |
Expenditure |
Total |
| |
as
on 10.03.200 |
Proposed |
|
| Facility
Centre at Hyderabad (A) |
|
|
|
| Lease
Deposit & Civil works |
5.00 |
11.82 |
16.82 |
| Furniture
& Interiors |
15.00 |
18.74 |
33.74 |
| Equipment |
|
|
|
| Computer
Systems |
38.00 |
49.32 |
87.32 |
| Software |
10.00 |
25.22 |
35.22 |
| 64
KBP Net work line |
- |
5.85 |
5.85 |
| Sub-total |
68.00 |
110.95 |
178.95 |
| Branch
office at USA(B) |
- |
41.98 |
41.98 |
| Preliminary
& Public Issue Expenses |
5.12 |
14.88 |
20.00 |
| Miscellaneous
Fixed Assets |
2.00 |
1.50 |
3.50 |
| Contingencies |
- |
3.45 |
3.45 |
| Total |
75.12 |
172.76 |
247.88 |
| |
|
|
|
Means
of finance
| PARTICULARS |
Raised
on 10.03.200 |
To
be Raised |
Total |
| Equity |
|
|
|
| Promoters,
friends, relatives &
associates |
84.00 |
39.00 |
123.08 |
| Public |
|
100.00 |
100.00 |
| Term
loan from Syndicate Bank |
|
24.80 |
24.80 |
| Total |
84.08 |
163.80 |
247.88 |
Summary
of past financial results for last three
years
Rs. In lacs
| PARTICULARS |
Audited
upto 31-Mar |
Prov.
Upto 15-Feb |
| |
1996-97 |
1997-98 |
1998-99 |
1999-00 |
| Income |
|
|
|
|
| Sales |
|
|
|
|
| From
services |
- |
63.50 |
60.63 |
110.41 |
| From
products traded |
44.85 |
- |
- |
- |
| Total |
44.85 |
63.50 |
60.63 |
110.41 |
| Other
income |
7.94 |
6.27 |
1.64 |
1.80 |
| Increase
/ (Decrease) in inventories |
-1.00 |
- |
- |
- |
| Total |
51.80 |
69.77 |
62.27 |
112.21 |
| Expenditure |
|
|
|
|
| Raw
material consumed |
6.29 |
3.90 |
1.05 |
- |
| Staff
costs |
4.84 |
10.14 |
35.17 |
30.95 |
| Other
manufacturing expenses |
20.62 |
15.88 |
3.06 |
4.59 |
| Administrative
expenses |
6.88 |
15.53 |
4.49 |
32.47 |
| Selling
and distribution expenses |
4.68 |
9.08 |
4.59 |
1.24 |
| Interest |
0.75 |
0.47 |
0.65 |
0.43 |
| Total |
44.06 |
54.99 |
49.02 |
69.67 |
| Net
profit before tax & extra-
ordinary items |
7.74 |
14.78 |
13.25 |
42.55 |
| Taxation |
1.31 |
0.42 |
0.36 |
1.50 |
| Depreciation |
4.52 |
10.92 |
7.99 |
23.66 |
| Preliminary
expenses written off |
- |
- |
- |
- |
| Net
profit before extra-ordinary items |
1.91 |
3.44 |
4.89 |
17.39 |
Please
visit http://www.sebi.gov.in/dp/recursion1.html
or
mail to : info@recursionsoftware.com
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