The company has already filed the draft prospectus with the Securities Exchange Board of India (Sebi). The IPO is lead managed by Ashika Credit Capital and the shares are proposed to be listed at the stock exchanges of Calcutta, Mumbai and Bangalore.

Of the public issue, 1.75 lakh equity shares are reserved on firm allotment basis at a price of Rs 15 for employees of Jupiter Infosys and Ashika Credit Capital Ltd, the lead manager, is subscribing to shares of 1.75 lakh. Besides, promoters of Jupiter Infosys are also pumping in Rs 6.41 crore.

The company plans to set up a Rs 11.66-crore project which involves acquisition of infrastructural facilities for expansion, upgradation of existing hardware and software facilities and product promotion. The company has earmarked Rs 3 crore for acquisition of a new office, Rs 1.43 crore for acquiring hardware and software, Rs 1.07 crore for buying furniture and other office equipment and Rs 1 crore for product promotion. A major portion of the issue proceeds, i.e., Rs 4.8 crore, is being earmarked for working capital requirements.

The project is at a very preliminary stage of implementation and the company is yet to acquire office premises. One of the risk factors highlighed in the offer document is that Jupiter's ``registered office has been taken on lease from promoter director of the company, Alok Garodia and his mother Sushila Garodia.'' The promoter and the company are also mired in several litigations.

Incorporated as Jupiter Agencies Pvt in 1978, the company was engaged in jute trading. In 1990, the company had diversified from jute trading to importers and distributors of computer hardwares and peripherals.

The company is one of the largest distributors of `Seagate' disk drives and the sole distributor of `Fullmark' brand of products in India.

Jupiter is an authorised distributor of Genius brand of products in India, Samsung Asia Pte Ltd and Imation South Asia. Also, the company is a channel partner of Karma Distribution(s) Pte Ltd. As part of its future plans, Jupiter has identified places like Calcutta, Mumbai, New Delhi and Bangalore to expand its operations. Jupiter plans to offer more and more quality products under its brand "Frontech" and may explore the possibility of third country exports.

Although the company has been in the field of information technology, it is operating in a business where profit margins are very low. Turnover has grown from Rs 18.64 crore in fiscal 1998 to Rs 81.65 crore in 2000. In tandem, net profit rose from Rs 2 lakh to Rs 37 lakh for the respective years.