Mumbai, August 6: The Rs 6.87 crore Amex Information Systems' maiden public offer has been oversubscribed a little over 5 times. Accrding to market sources, the company has received the amount in around 11,000 applications. The city-based infotech company had offered 12.5 lakh shares at a premium of Rs 45 per share. The issue closed on August 4. The Amex IPO was one of the better priced IPOs in the recent times commanding a price-earning ratio of 6.11.The IPO was primarily aimed at expanding the company's software development centre in Mumbai, to invest in its overseas subsidiaries and to augment the company's longterm capital resources. While the project cost was pegged at Rs 7.62 crore, apart from the Rs 6.87 crore mobilised through the IPO, the balance Rs 74.18 lakh would be financed through the internal accrual route.
Amex's present business includes software services and consultancy and specialises in client-server applications, re-engineering, migration, Y2K solutions. It also plans to venture into the Euro-currency conversion market and the e-commerce applications. The company has already obtained the requesite permission from RBI to set up its subsidiaries in the UK and Germany. It also proposes to set up a subsidiary in the USA.
During the year to March 1999, the company earned a net profit of Rs 2.23 crore from a total income of Rs 8.48 crore. And for fiscal 2000, Amex projects a net profit of Rs 4.92 crore from a total income of Rs 15.98 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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