Oasis Infotech: Below Average

Score: Below Average

BL Research Bureau

THE initial public offer of Oasis Infotech does not appear to hold the potential to deliver returns commensurate with the risks involved in an investment in this offer.

Prospects: The offer is from a predominantly software training company with a modest scale of operations. This offer, which is to finance its foray into a host of businesses, including software development and portal development, does not inspire confidence. A presence in more than one business segment appears a tall order to manage for a fledgling IT company that has restricted access to funding sources. In this backdrop, the proposal to utilise funds for a host of businesses does not appear encouraging.

What the company says: Oasis Infotech's main thrust of business is in software development, e-commerce-related services, software development for e-commerce products, IT-enabled services, e-banking and software training. Oasis Infotech plans to launch 14 portals for which the domain registration has already been obtained.

Oasis Infotech reported total income of Rs 1.41 crore and profits of Rs 0.09 crore for the year-ended March 2000. Of the total revenues, training contributed Rs 1.08 crores.

The project cost is Rs 6.73 crores, to be financed with a debt portion of Rs 0.66 crore. The public offer is for Rs 2 crore.

Industry :Computer software

Issue opens :October 4

Issue closes :October 11

Offer price :Rs 10

Project cost :Rs 6.73 crore

Offer size :Rs 2 crores

Min.application :Rs 1,000

Lead manager :Aryaman Financial

Listing :Hyderabad, Bangalore, Ahmedabad

Post-issue equity :Rs 6.02 crore

Promoters :V. Srikanth and associates