Thinksoft IPO Prices

Thinksoft IPO opens for subscription today: Asvini Kumar, MD

Thinksoft IPO opens for subscription today

The Chennai-based Thinksoft Global Services, a financial software resting company, has opened for subscription with an initial public offering of 36.46 lakh shares. The issue will close on September 24, 2009. The price band has been fixed at Rs 120-130 a share.

The IPO will consist of a fresh issue of 13.5 lakh shares and an offer for sale of 22.96 lakh shares by Gibraltar-based fund, Euro Indo Investments.

The company plans to raise up to Rs 47.3 crore through the issue of which Rs 16 crore will be used to set up a new testing centre in Chennai.

Thinksoft Global Services IPO Price Band and Bid Lot

The price band for the IPO of Thinksoft Global Services Ltd. is fixed at Rs.120/- to Rs.130/- per equity share, each having a Face Value of Rs.10/- each. The bid lot or the minimum application size for the upcoming IPO of Thinksoft Global Services Ltd. is 50 equity shares and in multiples thereof.Thinksoft Global Services Limited is a Banking, Financial Services and Insurance focused software

Thinksoft Global Services IPO Analysis

Investors can avoid the initial public offering of Thinksoft Global Services, a software testing company, given the concerns that surround its performance and global trends in the IT deal landscape. Its niche offerings may also force it to rely on a smaller universe of clients.At the upper end of the price band of Rs 130, the offer discounts its 2008-09 per share earnings by about nine times on an expanded equity base.

IPO Recommendation - Thinksoft Global Services

Focused on testing services in BFSI verticalThe IPO seems to be mainly to give an exit route to selling shareholders Promoted by technocrats, Mr Asvini Kumar, Ms Vanaja Anand and Mr Mohan Parvatikar, Thinksoft Global services, is a testing services company focused on the Banking, Financial Services & Insurance (BFSI) vertical. Europe contributes more than 50% of the revenues.

Thinksoft Global: Business of the Company

Thinksoft Global is an IT player that operates in the niche area of software testing in the Banking, Financial Services and Insurance (BFSI) vertical. Thinksoft is an early entrant in the field of software testing and has about 10 years of experience in the BFSI domain in testing.

Thinksoft Global: Key Risks

Thinksoft is heavily dependent on European customers with as much as 58% of its revenues for 2008 coming from European based clients.

Thinksoft Financials

For the year ended March 2008, the turnover of the company was Rs.6,997.38 lakhs which rose from Rs. 5,300.22 lakhs in 2007 and Rs.3,463.12 in the year before. The net profit for 2008 was Rs. 934.07 lakhs which rose from Rs.807.55 lakhs in 2007 and Rs.368.35 lakhs in the year before. The net profit margin for the latest year is 13.34%