Cranes Software ropes in top FIIs through $12m GDR

Cranes Software International has acquired several prestigious international institutional investors through the successful completion of its first GDR issue of close to $12 million, says Asif Khader, CEO and founder. The names will become available once Bombay Stock Exchange (BSE) allots the underlying shares.

The company, which was listed in October 2002 has in less than two years seen its valuation rise more than 20 times to around Rs 320 crore. Over the last two years, turnover has doubled every year to reach Rs 113 crore in 2003-04 and the net margin is close to 30 per cent, putting it in league with leaders of the IT industry.

Cranes, which began as a reseller of scientific software products and then branched out into training, has been able to power most of its recent growth through the acquisition of shrink wrapped product and thereafter "refurbishing these products and building scale," says Khader. Cranes has so far spent nearly $ 20 million in acquisitions.

As a result, in two years, Cranes has been able to take the turnover of its statistical analysis product Systat from $ 2 million to $ 10 million.

As a next step it is launching a new upgraded version, Systat 11, with better user interface and upgraded graphics. It is also rolling out test and measuring products in wireless LAN in collaboration with the global leader in the field Tektronix.

In keeping with its growth strategy, in the current year Cranes is targeting a 50 per cent rise in the consolidated topline. However, as it will raise development expenditure by two to three times and charge it entirely to revenue, operating margins will be affected.

With savings in interest and taxation, net margins will do better, explains Khader.

To enable the volume growth, Cranes will double its present staff strength of nearly 260 by the end of the year and for this will be acquiring new premises.