IPO Update : FCS Software Solutions Ltd.

Sailing on the IPO Wave for listing gains
FCS has entered the primary markets with a public offer of 35 Lac shares @ Rs. 50 Per share (a premium of Rs. 40 on face value of Rs. 10 )
Investment Guru recommends investors to ride on the IPO wave and apply for the IPO to get listing gains. The IPO is expected to generate listing gains in range of 30-50% mainly due to the IPO boom going on in the markets. Another reason being low float that will lead to good listing. Other factor is that 50% of the issue will be alloted to retail investors and this may also lead to spurt on listing day in the price of the stock.
The company has released limited applications resulting in scarcity of the application forms for this IPO.
About the company
FCS claims to be a leading provider of IT services. However the company can be termed to be a small player in the software service consulting space. The company is into fields of E-learning and digital consulting, IT Consulting, Product engineering services and application support.

The issue proceeds will be use to create IT infrastructure to for addding 300 software developres.

The company is promoted by Dalip Kumar , who looks reasonably qualified to take on the company, however, does not have any big feather in his cap.

The company has declared 0.25% dividend during last five years

The company is heavily dependent on US for its business and hence any negative turn of events in US directly impacts its revenues, for example the Sep11 blasts made a big dent in the performance of the company in year 2002-03.

Being a small player in a business which gives preference to the large players , the company would have tough competition in order to grow itself.

The offers comes at a P/E of 6 which looks reasonable and hence offers a scope for listing gains for investors.
Issue Closes : 26-Aug-2005.


Anonymous said...

Thanks Rajesh. I was wondering wheteher to apply or not , but will apply now based on your recommendation,however, subject to avaialblity of forms :)


Anonymous said...


Anonymous said...

Thanks for your sharp analysis again. You are simply great !

Kapil, Mumbai

Anonymous said...

I think it is 50000 for retail investors , but not very sure. Can anybody confirm my views ?

Anonymous said...

please rajesh throw some views about Amar remedies iPO. before closing date..

Anonymous said...

wow, You have added a ticker to your blog which looks really good.
You are really working hard in making this blog a wonderful place to visit.

Anonymous said...

Hi Rajesh,
Could you please provide your expert advice on the amar remedies IPO?

Anonymous said...

Dear Guru,
I hold 1000 shares of arvind remedies bought at a price of rs.4 per share. The stock has duped the investors. Is amar remedies issue going to be the same ?
Please advice if we it is advisable to go for this IPo or not given its pricing ?
The company do not have any popular products and is still asking a premiuim !
Need your guidance on this issue .

Anonymous said...

FCS IPo Closing date is extended to 29th August. Good opportunity for those who could not get the application forms earlier. I was able to get one at ILFS.

Kiran Shridhar said...

hi murthy,
dunno whether rajesh will mind if i pitch in about arvind remedies. Murthy! you have bought this stock at a huge premium at Rs4/-, i feel. Its trading at 4 times book of FY04(compare this to amar remedies's ipo price which comes out to 1.5 times book of FY04). Arvind remedies's eps was 10 paise whereas amar remedies's eps was 6 rs both for FY04. So, i consider the companies miles apart.

dunno if rajesh might have an opinion,

P.S: Note that i still haven't found the reason for amar remedies reporting annual results in June every year while arvind remedies reports in march every year

Anonymous said...

this is MR:H.K GOHEL from rajkot
i have some equity the name of SPICE JET Ltd. SO I didn't get it demet of them so can u just find out that thing .
BO ID NO:1201800000146125
date 09/07/2005.
sir i wann to proper shar gide line because i wann to just contect with this office.
i hope i get this infomatoin.