Mumbai, Sept 24: Software Technology Group International (STGIL), a New Delhi-based company focussing mainly on computer education and training, is planning an initial public offering aggregating between Rs 17.5 crore and Rs 21.04 crore. The company proposes to offer 31,25,000 shares of Rs 10 at a premium between Rs 45 and Rs 56. Given STG's fiscal 1999 earning per share of Rs 2.57, the price-to-earning ratio in the given offer price band works out to 21.4-25.7. Only recently, the company has filed the draft offer document with Sebi.
The main objectives of STG's maiden public offering are to finance expansion of its training and consulting divisions and also to finance expansion of its franchisee network, in and outside the country. The total project cost is peggged at Rs 22.01 crore, with at least Rs 17.53 crore coming from the IPO route and the balance being financed by internal accrual.
Post-offer, promoter holding in the company would be at 74.27 per cent down from the current 99 per cent. While 25 per cent would be held by the public, the balance will be with the employees of the company.
For fiscal 1999, the company the earned a net profit of Rs 1.82 crore from a total income of Rs 19.20 crore. However, for fiscal 2000, the company projects a net profit of Rs 5 crore from a total income of Rs 33.84 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.