Happy
02-09-2009, 12:11 PM
EDSERV SOFTSYSTEMS LIMITED IPO
Issue Period June 12, 2008 to June 20, 2008
Issue Size 1,00,00,000 Equity Shares
Issue Type 100% Book Building
Face Value Rs. 10/-
Price Range Rs 36 to Rs 38
Market Lot 150 shares
Minimum Order Quantity 150 shares
Key Concerns:
Model not viable in current downturn: In the current economic slowdown,
this model may not be favourable for companies as most of them are on a
recruitment freeze. Paying up one month’s salary of the employee they
pick on from HEAD interface can prove to be an expensive proposition for
corporates. Also, this model caters to fitting of jobs for freshers. Thus, the
revenue model does not look viable in the current liquidity crunch where
companies are laying off more and curbing any discretionary expense.
Lumpy revenue: The company has reported very lumpy revenues with
sequential de-growth in FY06 and FY07. Therefore, revenue visibility is a
concern.
CARE has assigned IPO grade 1: The grading factors they must have
considered in Edserv’s position are small player in the software
development, training and staffing solutions space, high level of
uncertainty associated with its future revenue streams, which largely
hinge on an evolving business model and moderate corporate governance
practices.
Maximum Subscription Amount for Retail Investor Rs.100000
It's a small ipo but one can apply for listing gain AND NOT for investment, there are talks about Rs65 as gray market price.:)
Issue Period June 12, 2008 to June 20, 2008
Issue Size 1,00,00,000 Equity Shares
Issue Type 100% Book Building
Face Value Rs. 10/-
Price Range Rs 36 to Rs 38
Market Lot 150 shares
Minimum Order Quantity 150 shares
Key Concerns:
Model not viable in current downturn: In the current economic slowdown,
this model may not be favourable for companies as most of them are on a
recruitment freeze. Paying up one month’s salary of the employee they
pick on from HEAD interface can prove to be an expensive proposition for
corporates. Also, this model caters to fitting of jobs for freshers. Thus, the
revenue model does not look viable in the current liquidity crunch where
companies are laying off more and curbing any discretionary expense.
Lumpy revenue: The company has reported very lumpy revenues with
sequential de-growth in FY06 and FY07. Therefore, revenue visibility is a
concern.
CARE has assigned IPO grade 1: The grading factors they must have
considered in Edserv’s position are small player in the software
development, training and staffing solutions space, high level of
uncertainty associated with its future revenue streams, which largely
hinge on an evolving business model and moderate corporate governance
practices.
Maximum Subscription Amount for Retail Investor Rs.100000
It's a small ipo but one can apply for listing gain AND NOT for investment, there are talks about Rs65 as gray market price.:)