Money Tree

Salient Features of the Issue

Issue Opens : January.29.2007
Issue Closes : February.02.2007
Issue Size : 6,93,00,000 Equity Shares
Issue Type : Book Building
Face value : Rs. 10/-
Price Range : Rs. 54/-to Rs.64/-
Tick Size : Re.1/-
Market Lot : 100
Minimum Order Qty : 100
Listing Stock Exchange : NsE, BSE

Main Objects of the Issue

To use the funds for Settlement of loan of Rs. 450 mn
To set up new facilities With investment of Rs. 463 mn
To make acquisitions

Key Strengths

In terms of profit in the financial year 2006, It is in the top- 3 BPO providers in India.
NASSCOM ranked it the fifth-largest BPO provider.
It helps in providing outsourcing services by using its technology platforms.
The no. of delivery centres has increased from 4 to 20. Its employees have grown from 4,009 to 10,717 and clients from 21 to 74 in last two years.
The company is placed in a high growth industry.

Weaknesses

The company has very low profit margins as compared to its peer group.
The company enjoys tax benefits under section 10A and 10B of the Income Tax Act and the exemptions are available till 31st March 2009. Therefore the company will be liable to pay tax at normal rates which may affect the profitability of the company.
The company faces competition from BPO divisions of Indian and foreign IT companies and from offshore BPO providers.
The Industry experiences high employee turnover.