The Hindu Business Line : Four Soft to raise Rs 15 cr via IPO, pvt placement

FOUR Soft Pvt Ltd, global supply chain management solutions provider, has announced plans to raise Rs 25 crore. While a maiden public offer of 15 lakh shares is projected to garner Rs 15 crore, the rest will be raised through private placement of equity.

Speaking to newspersons on Monday, the members of the Four Soft board, headed by the Managing Director, Mr Palem Srikanth Reddy, said that the public issue would be at a premium of Rs 90 per share.

After mandatory regulatory clearances, the offer of subscription will be made in July this year. The company expects to file the prospectus with the Securities and Exchange Board of India later this month.

"The IPO proceeds, along with the private placement offer of equity to the existing shareholders and strategic investors, are aimed at funding the company expansion plans. We are in parleys with strategic investors," Mr Reddy said.

"The company is planning to enhance its international marketing network in the Asia-Pacific, Europe and the US. With a clientele spanning the US, which accounts for about 75 per cent of the company business, the enhanced support and marketing team will help us ramp up our operations faster."

The company has appointed UTI Securities and Centrum Finance as lead manager and co-lead manager respectively for the proposed public offer.

"We have a healthy order book and are carrying over orders worth Rs 13 crore to the first quarter this year. In the last financial year, we logged revenues of Rs 7.5 crore, including a net profit of Rs 4 crore. This quarter, we expect to clock revenues of Rs 5 crore," Mr Reddy said.

According to him, enterprise solutions for supply chain management are not feasible with conventional technologies of legacy systems and client server architecture.

"We have succeeded in integrating the processes and players in the supply chain, through Web-centric three-tier J2EE (Java to Enterprise Edition) architecture.

"At this point, we are the only enterprise solution company in the supply chain process management that has achieved end-to-end execution capability in the global market."

The company has about 115 persons and plans to double the number.

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