New Delhi: Bank Julius Baer and Company, a Zurich-based FII, has picked up a 5 per cent stake in KCC Software. The FII picked up the stake in the company during its initial public offer which was opened for subscription in April, 2000.KCC has also been listed on the Delhi Stock Exchange at a marginal premium at Rs 11.45 against its offer price of Rs 10. However, after its debut at the Delhi Stock Exchange on Tuesday, the stock has slipped below its offer price and is currently hovering around Rs 8.8. The poor show of KCC on the bourses does not reflect the fundamentals of the company, according to a top official of KCC Software. Delhi-based KCC's IPO of was oversubscribed by around two times. Around 40 NRIs are also subscribed to the IPO. KCC had offered 40 lakh equity shares of Rs 10 each to the public. Of this, 8 lakh equity shares were reserved for FIIs/OCBs/NRIs and 8 lakh shares for MFs/FIs.
The company is mainly into providing high-end educational training. At present, KCC has only educational centre (Delhi). Two more centres are coming up (one at South Extension in Delhi and the other in Gurgaon, Haryana), said the official. The company is currently in the process of setting up a Rs 5.81-crore project. The project involves upgradation of existing software development and educational training facilities and establishing software development and training centres. Out of the issue proceeds, Rs 76 lakh is being used for augmenting working capital resources.
For fiscal 2000, KCC Software has registered a sharp growth in net profit from Rs 9.22 lakh in fiscal 1999 to Rs 30 lakh. Turnover has risen from Rs 86.7 lakh in 1999 to Rs 1.45 crore. Of the total turnover, a major portion of Rs 1.02 crore came from training and Rs 43 lakh from software development. KCC depends on government departments for its software development income and is currently implementing two projects. Of the Rs 43-lakh income, around Rs 20 lakh came from NIC Services Ltd, a government concern. The investment in more educational centres may improve KCC's cash flows and the company may see a quantum leap in net profit and turnover for the current fiscal, said the official. According to the official, KCC may close the year with a turnover in the region of Rs 3.5-4 crore and net profit could be around Rs 1.5 crore.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.