|
9th
July 2000: KANIKA INFOTECH LIMITED
Our
recommendation:SHUN and AVOID
Why:
| • |
Notice
the change in the name in 1999? We
think it is to cash on the IT
sentiments |
| • |
Notice
the raising of over Rs. 800 lacs
in paid up capital? All in a
period of less than 15 days. This
has created almost 60 % of the
equity in favour of the promoters.
Why this money was raised form the
promoters and where it is
deployed, the company will not
answer |
| • |
Notice
that the group company, Sunil
Polypack is in default with IDBI?
Has the company become poor and
the promoter’s rich? If the
intention was good, then the
promoters wopuld have first
regularized the account. How did
IDBI give a NoC to this? |
| • |
Notice
the number of diverse activities
the group is in? Well, I heard of
putting a finger in every |
Seen
the risk factors?
| • |
The
Company’s scale of operation in
software development activities is
relatively low and their ability
to handle large projects is
untested |
| • |
®
Among Group Companies, 1) Anil
Apartments Pvt. Ltd. Incurred net
losses for the period ended
31.03.97 and 31.03.98. 2) Sunil
Polypack Ltd. And Deepika Agencies
Pvt. Ltd. Incurred net losses for
the period ended 31st March 1997.
(P) The losses will not have
impact on the performance of the
Company |
| • |
®
The name of the company was
changed from Kanika Overseas
Limited to Kanika Infotech Limited
and a fresh certificate of
incorporation was issued by ROC on
June 21st, 1999 (P) The name was
changed to reflect the business of
the company in a more appropriate
manner. |
One
thing about India. Many more suckers in
the capital markets than anywhere else.
Hence, the small man should always be told
‘do not blame anybody else for the
losses’
Other facts:
| • |
Public
issue of 36 lacs shares at Rs. 10
each |
| • |
On
Application: Rs. 5.00 |
| • |
IPO
opens on 11/7/2000 and closes on
17/7/2000 |
| • |
As
on 01.04.2000, one of the group
company Sunil Polypack Ltd., is in
default towards repayment of term
loan including interest of
Rs.280.19 Lacs to Industrial
Development Bank of India |
| • |
Proposed
listing at Calcutta, Hyderabad,
Mumbai & Ahmedabad Stock
Exchanges |
| • |
The
number of shares held by the core
promoters and also pre and post
issue shareholding pattern of
promoters and others are as
follows: |
| Entity |
Existing |
After
the Public Issue |
| |
No
of Shares |
% |
No.
of Shares |
% |
| Promoters
& Their Associates |
96,93,000 |
100.00 |
98,73,000 |
73.28% |
| Public |
- |
- |
36,00,000 |
26.72 |
| Total |
96,93,000 |
100.00 |
1,34,73,000 |
100.00 |
Objects
of the Issue
| • |
To
setup software development centre
at Calcutta |
| • |
To
upgrade existing hardware,
software and other infrastructural
facilities. |
| • |
To
provide funds for marketing and
brand development. |
| • |
To
meet the working capital
requirement |
| • |
To
meet the expenses of the present
Issue |
| • |
To
get the Equity Shares listed on
the Stock Exchanges. |
Cost
of the Project
| PARTICULARS |
(Rs.
in Lacs) |
| LAND
& BUILDING |
25.00 |
| OFFICE
EQUIPMENTS |
12.05 |
| FURNITURE
& FIXTURE |
52.65 |
| MARKETING
& BRAND BUILDING |
58.12 |
| DATA
COMMUNICATION FACILITY |
15.00 |
| UPGRADATION
OF EXISTING EQUIPMENT |
18.50 |
| PRELIMINARY
AND PUBLIC ISSUE |
35.00 |
| COMPUTER
SYSTEMS |
85.00 |
| LONG
TERM WORKING CAPITAL |
118.68 |
| Total |
420.00 |
Means
of finance
| PARTICULARS |
Total |
| PROMOTERS
CONTRIBUTION |
18.00 |
| PUBLIC
ISSUE |
360.00 |
| TERM
LOAN FROM BANK |
42.00 |
| Total |
420.00 |
How
paid up equity increased in 15 days:
| Date |
|
|
|
| 06.01.2000 |
CASH |
26,18,100 |
Rs.
261.81 lacs |
| 12.01.2000 |
CASH |
38,00,830 |
Rs.
380.08 lacs |
| 12.01.2000 |
CASH |
3,40,570 |
Rs.
34.05 lacs |
| 18.01.2000 |
CASH |
21,74,030 |
Rs.
217.40 lacs |
Kanika
Infotech Limited was incorporated on
February 08, 1995 as Kanika Overseas
Limited under the Companies Act, 1956.The
name was subsequently changed to Kanika
Infotech Limited, and Registrar of
Companies West Bengal issued a fresh
certificate of incorporation on June 21,
1999.
FINANCIAL INFORMATION
The audited financial performance of the
Company for the four years ended on 31st
March 1999 and for the period ending on
20th January 2000 is as under: -
|
|
31.03.96 |
31.03.97 |
31.03.98
|
31.03.99 |
20.01.2000 |
| Income
from Operations |
|
|
|
60.59 |
101.8 |
| Other
Income |
|
|
|
0.02 |
1.11 |
| Total
Income |
|
|
|
60.62 |
102.92 |
| PBIDT |
-0.04 |
-0.06 |
-0.07 |
6.92 |
27.87 |
| Interest |
|
|
|
1.23 |
1.4 |
| Depreciation |
|
|
|
3.42 |
15.68 |
| Profit/
(Loss) Before Tax |
-0.04 |
-0.06 |
-0.07 |
2.26 |
10.78 |
| Profit
After Tax |
|
|
|
2.03 |
10.75 |
| Share
Capital |
0.26 |
0.36 |
0.36 |
0.36 |
969.3 |
For
complete offer document: http://www.sebi.gov.in/dp/kanika1.html
or
For concise and relevant portions, please
visit: http://www.soffina.com/si_ipo/index.htm
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