Synfosys Business Solutions Limited

 Issue Summary
  • Type
  • Equity
  • Size
  • Rs 21 m
  • Price
  • Rs 10
  • Face value
  • Rs 10 per share
  • Issue Opens
  • 24th October 2000
  • Issue Closes
  • 3rd November 2000
  • Shares on offer
  • 2.1 m
  • Min. subscription
  • Listing
  • Bangalore and Hyderabad Stock Exchanges
  • Lead Managers
  • SMIFS Capital Markets Limited
  • Promoters
  • Pramod K Sana, Pranathi Reddy Sana and Aparna Mendonce
  • Promoters post
        issue holding
  • NA

  • Business

    Synfosys Business Solutions was incorporated in 1997. The company started with an overall focus on software development, on-site services and web-enabled technologies related projects. The company commenced its operation with a project from the USA and thereafter had established several strategic and technical alliances in USA, Singapore, and Gulf countries.

    The company is currently working on several on projects on-site as well as offshore for various customers in USA, Kingdom of Saudi Arabia, and Singapore. Application areas covered include re-engineering, migration, data warehousing and product development. Synfosys undertakes such software assignments from stage of system formation to its implementation leading to high-end solutions.

    As part of its product development the company has recently launched a website "" based on multi-lingual domain name technology. This technology would enable the people to register domain names in Indian languages as opposed to the existing English domain name registration. This would make Internet accessible to one and all without any language barrier.

    The company has an ongoing contract with Saudi Science Application International (SSAI), Saudi Arabia which is estimated to earn a revenue of minimum of Rs 30 m per annum and the company has extended the contract for another three years. The company also has an agreement with I-DNS.Net International Pte Ltd., Singapore for the multilingual domain which is expected to earn a revenue of Rs 50 m per annum.

    The main objectives of the issue are

    • To establish software development facilities.
    • To establish overseas offices in USA, Singapore and Dubai.
    • To augment working capital resources.
    • To meet the expenses of the Issue
  • Promoters
      Pramod K. Sana aged 36, is the Managing Director. He had done his Bachelor's in Industrial Engineering and subsequently he had gone to US to pursue his MS in Industrial Engineering.

    Pranathi Reddy Sana aged 34, Director, is a US national and has done her BS in Computer Science and has been in Computer industry from the start of her career. She has been a marketing consultant for several US companies as well as Indian Software companies and has been in this field for the last 7 years.

    Aparna Mendonce aged 34, Director - Administration, is a Post Graduate in Documentation and Information Science from the Indian Statistical Institute, Bangalore. She has 12 years of IT related experience before promoting this Company

  • Sector

    Worldwide, IT has become a strategic integral tool for efficient and effective business management. Apart from finding applications in routine operations, it is widely used to enable companies to reengineer business processes, restructure organizations and react quickly to the dynamics of the external environment.

    As businesses have become more dependant on IT, corporate budgets for IT services have grown dramatically. International Data Corporation (IDC) has estimated that the worldwide market for IT services comprising, integration, software development, outsourcing and network management will increase to US$ 326 billion during the calendar year 1999. This is further expected to grow at 10% per annum over the next three years.

    Over a period of time enterprises have built up IT solutions/networks to meet their business requirements. A number of these solutions need to be upgraded to be in line with changes in business requirements and technology. With enterprises worldwide focussing on quicker delivery times and on cutting costs, outsourcing maintenance of their existing systems and development of new applications/solutions, have become critical requirements.

     Reasons not to apply
  • The company as part of its expansion project proposes to establish offices in USA, Singapore, and Dubai to supplement the marketing efforts of its operations. The company has not identified premises in any of these locations for which Rs 22 m has been earmarked.

  • The market for software products and services is highly competitive

     Financial Performance


  • Where the money comes from...
  • (Rs m) (%)
    Share capital 82 80%
    Reserves and surplus 10 10%
    Term Loan 10 10%
    Total 102 100%
  • Where the money will go...
  • (Rs m) (%)
    Building 11 10%
    Furniture and fixtures 5 5%
    Plant and Machinery 21 21%
    Misc.. Fixed assets 4 4%
    Vehicles 2 2%
    Preliminary & pre-operative exp. 1 1%
    Issue expenses 3 3%
    Contingencies 2 2%
    Overseas office establishment 22 22%
    Working capital requirement 28 28%
    Advances and deposits 1 1%
    Total 102 100%