Stg Plans Capex Amounting To Rs 6.6 Crore

Merits mention, when the company launched its initial public offering (IPO) in December last year, it was oversubscribed more than 63 times and registered a record collection of Rs 600 crore. The company issued 31.87 lakh shares through the IPO at a premium of Rs 56.

Currently, the company is looking at acquisitions in India and abroad. To make that possible, the company is planning to increase its authorised capital from Rs 13 crore to Rs 20 crore, as also raise funds from the market.

STG has formed a high level committee to conduct a thorough evaluation of possible acquisitions. The company's immediate focus is on tapping business opportunities in Europe and the United States, for which it is examining possibilities of growth through acquisitions.

 

The company has also decided to launch an employee stock option (Esop) scheme, through which it has decided to issue upto nine lakh equity shares of Rs 10 each, to retain talented employees in the company.

Meanwhile, the company has initiated an ambitious expansion programme for its software development division. It has decided to focus on high growth areas such as business-to-business (B2B) e-commerce solutions.

It has launched a B2B e-commerce portal named digitaltradeb2b.com. STG's e-commerce strategy is likely to focus on enterprise resource planning (ERP) solutions, web-enabled applications, B2B solutions, portals and integration with web-based applications.

To expand operations, the company has already set up subsidiaries in New Jersey, US and Australia to exploit opportunities abroad. These were set up to offer software services and training. In addition, the company has appointed franchises in Sri Lanka and Abu Dhabi. The franchises in Sri Lanka and Abu Dhabi offer training. On these, STG has spent close to Rs 13 crore.

In the year ended March 31, 2000, the company registered a turnover of Rs 32.77 crore as compared to Rs 19.82 crore in the previous financial year. The company's net profit jumped from Rs 1.82 crore in the 1998-99 fiscal, to over Rs 7.8 crore in the financial year 1999-2000.