Hofincons To Float Shares By 2000

The Rs 18-crore Hofincons group is planning to come out with a public issue towards the end of the year 2000.

The group intends to merge two companies, Hofincons Industrial Services, and Hofinsoft Services Ltd, and the merged entity will go for the float.

Announcing this at the launch of the enterprise versions of its software products, called Impact and Maverick, company officials said the group hopes to raise at least Rs 10 crore from the proposed public issue.

"A final decision on the IPO will be made depending on the group's financial results for the year 1999-2000," the officials said.

The group has targetted a turnover of Rs 25-30 crore for the year ended March, 2000.

TDICI, a subsidiary of ICICI, holds a 24 per cent stake in Hofincons Industrial, brought in at a premium of Rs 16 per share. TDICI has also picked up a 33 per cent stake in Hofinsoft at a premium of Rs 5 per share.

The promoters are also expected to infuse additional equity at a premium into the company before the IPO is made.

Talks are also on with Hofinsoft's strategic partner CSM for a possible equity investment in the company. Hofinsoft's products, Impact and Maverick, have the largest installed base in Indian computerised maintenance and materials management software (CMMS).