Given the company's fiscal 1999 earnings per share of Rs 26.84, the price-earning multiple at the offer price of Rs 300 works out to 11.17. This makes the Geometric IPO one of the most attractive software issues in recent times. The company has filed the draft offer document with Sebi. The offer is being lead managed by Enam Financial Consultants and Kotak Mahindra Capital. The shares of Geometric are to be listed on the National and Pune stock exchanges.

According to the document, the main objectives of the offer are to set up software-development facilities at Pune and to meet capital- expenditure needs. The cost of the project is pegged at Rs 18.50 crore, of which Rs 9.30 crore is being met from issue proceeds, Rs 8 crore by a term loan from Exim Bank, and the balance is coming from internal accruals.

Geometric's main business focus is in the development of highly specialised engineering software solutions for computer-aided design/manufacture/engineering (CAD/CAM/ CAE), product data management (PDM) and the architectural engineering and construction (AEC) segments. The company's business includes projects, technologies, and products. During fiscal 1999, 41 per cent of Geometric's Rs 20.53-crore revenue were contributed by component technologies and products.

According to the document, Geometric's competitive edge comes from its strong background and extensive knowledge base in the area of CAD/CAM, geometry and mathematics. The company also has intellectual property rights for a number of its products. Its customers include seven out of the leading 12 international CAD/CAM/CAE vendors.

Through the present offer, while Draper is offering 104,200 shares of Geometric, the other two venture funds -- ICICI Venture and Moldflow Mauritius - are offering 625,000 and 270,800 shares respectively.

Post-offer, the three venture funds will hold 1.83 per cent, 10.98 per cent, and 4.76 per cent respectively in the company's Rs 5.24-crore equity. The holdings of another foreign venture fund, MacNeal Schwendler Corp, will be reduced to 9.93 per cent, from 10.56 per cent, though it is not offering any shares.

Post-offer, Godrej & Boyce Mfg Co, one of the company's two promoters, would hold 21.54 per cent, down from the present 22.9 per cent. The employees through the company's employee stock option scheme will hold around 13.20 per cent. During 1999, Geometric posted a net profit of Rs 5.10 crore from a revenue of Rs 20.53 crore. Year-on-year, while the net profit growth was at 190 per cent, the revenue growth was around 45 per cent.

A major part of the company's fiscal 1999 revenues (Rs 19.37 crore or 94.36 per cent of the revenue) originated overseas.