Preludesys India IPO Review


Preludesys India is an IT solutions provider in India. They are planning for an IPO. They have filed a draft red herring prospectus with the market regulator SEBI. Size of the issue of Rs 81.30 Cr.  Main areas of the company are software development, enterprise application service, QA and Testing, BPO and strategic sourcing with strong focus on verticals like banking, media, financial services, manufacturing, technology and insurance. Out of the IPO money; Rs 11.2 Cr will be used for the setting up of global delivery center; Rs 16 Cr will be used for opening 8 branches across USA and Asia Pacific Region; Rs 9.1 Cr will be used for the development and go to market efforts of enterprise mobility solution; Rs 8 Cr will be used for the repaying of the existing loan. Birla Capital and Financial Services Limited is the book running lead manager of the issue.

We are living in a modern world and the advent of cloud computing, social media, smart phones and tablets are leading the world to a new era. The advent of internet helped humanity to taste the intelligence of mankind.  Most institutions are getting computerized in these days. So computer has become an unavoidable factor of modern life. Spread of telecommunication and adoption of smart phones are increased in these days.

Indian IT Industry is expected to account for 6% of the country’s annual GDP and 28% of annual exports by 2020. It will create 50 million urban employments by that period. The industry will be one of the largest job creators in India.

Company was incorporated in 1998. Company provides consulting and delivery expertise in solution design, development and integration from delivery centers in India and in USA. Company reported a total income of Rs 44.25 Cr and a consolidated net profit of Rs 2.2 Cr in the six months ended Sep 30, 2010. Company reported a total income of Rs 13.03 Cr and a net profit of Rs 1.7 Cr in the FY 2011. It is a very good company from IT sector. Investors are strictly instructed to study the company with its issue price. The IPO price band will be available soon.

IPO Summary

IPO Type: 100% Book Building

IPO Size: Rs 81.3 Cr

Face Value: Rs 10

IPO Price: Not available

Listing At: BSE, NSE

The sole book running lead manager to the issue is Birla Capital and Financial Services Limited.

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