Aztec Soft Eyes Rs 52 Crore From Initial Offering

Bangalore-based Aztec Software and Technology Services (Aztec) has come out with an initial public offer (IPO) of Rs 52 crore.

90 per cent of the offer would be through the book-built route which opens on October 12 and ends on October 18, 2000. The company has fixed the floor price at Rs 80 per share on a face value of Rs 3.

The remaining 10 per cent of the offer will be made through the fixed price route which opens on October 12 and closing on November 2, 2000. J M Morgan Stanley Ltd is the book running lead manager for the issue.

Of the proceeds from the IPO, Aztec hopes to invest Rs 14.4 crore to improve the existing facilities at its development office at Bangalore, whereas Rs 25 crore will be used to develop a new office building. Rs 8.4 crore will be set aside for acquisitions and for forging joint ventures.

"We have not identified any company for acquisition so far. However, we will be interested in a company with similar interests, and whose acquisition will give us a certain value addition," said S Parthasarathy, chairman and CEO, Aztec.

Currently, e4e Holdings Ltd (Mauritius), the company owned by K B Chandrasekhar, venture capitalist and ex-chairman of Exodus Communications Inc, has a 46 per cent interest in the company.

Chandrasekhar is the angel investor in the company. 31 per cent of the stake lies with the company's employees' welfare trust by way of employee stock options, and about 15 per cent is held by the Parthasarathy. Post IPO, Chandrasekhar's interest in the company will be diluted by about 10 per cent.

Aztec recorded net revenues of Rs 31.9 crore and net profit of Rs 8.6 crore in the first half of this fiscal, against a net income of Rs 13.78 crore and net profit of Rs 4.1 crore in 1999-2000.