Maars Egm To Consider Hike In Fii Limit To 30%

The board of directors of Maars Software has decided to convene an EGM on July 6 to consider raising the FII limit in the scrip from 24 per cent to 30 per cent. The company is also considering issue of shares to its employees under the employees stock option scheme.

On the Bombay Stock Exchange, the scrip touched a high of Rs 327.50 on May 26 this year. Following the general weakening of sentiment, the scrip too has been on the downtrend, falling to Rs 182.90 last Thursday. However, it recovered on the last trading day of the week, hitting the upper end of the circuit filter at Rs 201.10, with 49,900 shares changing hands.

Maars Software was incorporated in 1985 and it went public in Jan, 1996. The turnover for the year ended December 1997 was Rs 16 crore. The company has targeted a turnover of Rs 50 crore for the current year. The net profit for 1997 was Rs 3.69 crore, which on an equity capital of Rs 5.10 translates into an EPS of Rs 7.24.

The company primarily provides turnkey solutions to the manufacturing industry. Its other activities include on-site consultancy, offshore development, product development, and training and consultancy. Of the total equity, the promoters hold around 66 per cent.

Maars has a 100 per cent subsidiary in the USA. It also has sponsorship arrangements in Saudi Arabia covering the entire Middle-East market. The company has got marketing facilities and tie-ups in the USA and Singapore.

According to analysts, the company was more focused on the consultancy front, but it now wants to lay similar emphasis on the project and products division.

They add that the main strength of the company lies in the consultancy division especially with respect to the SAP consulting business.

Given the demand spurt in the requirements of SAP consultants, the company could achieve an over 100 per cent growth in this area in the next couple of years, they said.