Leading Edge hives products. - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Leading Edge hives products.

Apr 24, 2000

Leading Edge Systems Ltd has decided to hive off its products into separate companies. Leading Edge is a software solutions company that was recently in the news for acquiring eCapital solutions by means of a stockswap to the tune of Rs 9,500 m (which was one of the largest acquisitions ever made in the Indian software business) and California based Applisoft for a sum of Rs 375 m. The company proposes to immediately hive off its two products i.e. e-vector, a telecom software that enables mobile use and customer relationship management products (CRM) into separate companies.

What is significant about creating these revolutionary models is that the funds required for marketing of each of these products will be derived by selling stake in equity of the newly hived off product company to strategic investors. This shall make the product independent of the parent company. The other benefit is that investors have become increasingly discerning as to product lines while investing in software companies. This will ensure maximum investments by investors who are upbeat only on one product and would like to avoid investment in a basket of products.

While marketing costs, which are more directly attributable to the product, shall be derived from the product itself, research and development costs shall continue to be derived from the parent company.

The other advantage is that each of these companies shall be independent profit and responsibility centres ensuring better accountability.

It is quite likely that more and more software companies would develop such business models for growth especially in view of the considerable increase in the range of products offered by them and divergence in the same.

Equitymaster requests your view! Post a comment on "Leading Edge hives products.". Click here!

  

More Views on News

If You had Invested Rs 1 Lakh in TCS in 2011, this is how Much You Would have Today (Views On News)

Nov 30, 2021

Did TCS perform better than the market and its peers?

India's Top 4 IT Companies are Struggling. Here's Why... (Views On News)

Oct 22, 2021

As attrition rates are unbelievably high, top Indian IT companies are going for big-ticket raises, and much more hiring this year.

Infosys had an Exceptional Quarter Buoyed by Huge Deal Wins. Revenue Guidance Boosts Stock (Views On News)

Oct 14, 2021

Infosys raised its forecast for annual revenue growth to 16.5-17.5% from the earlier 14-16%, predicted in July 2021.

Info Edge: The Anatomy of an Indian Internet Behemoth (Views On News)

Oct 2, 2021

Info Edge is very popular in the Indian startup ecosystem due to its active participation in funding events.

This Indian Company is Tapping into the Huge Autonomous Driving Opportunity (Views On News)

Sep 14, 2021

Despite many challenges, Indian companies and startups have not shied away from entering this space.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRIGYN TECHNOLOGIES SHARE PRICE


Dec 3, 2021 (Close)

TRACK TRIGYN TECHNOLOGIES

  • Track your investment in TRIGYN TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON TRIGYN TECHNOLOGIES

TRIGYN TECHNOLOGIES 5-YR ANALYSIS

COMPARE TRIGYN TECHNOLOGIES WITH

MARKET STATS