Thinksoft Global Services attracts 31% premium on debut

Settles at Rs 164.30 on the BSE compared to IPO price of Rs 125

Shares of software firm Thinksoft Global Services settled at Rs 164.30 on the BSE, a premium of 31.44% over the initial public offer price of Rs 125.

On BSE, 1.79 crore shares were traded on the Thinksoft Global Services counter.

The stock hit a high of Rs 170 and a low of Rs 100. The stock debuted at Rs 100, a discount of 20% over the initial public offer (IPO) of Rs 125 per share.

The current price of Rs 164.30 discounts the year ended March 2009 EPS of Rs 14.40 (based on consolidated financial performance), by a PE multiple of 11.40.

The Chennai-based firm had raised Rs 45.57 crore through the recently concluded IPO. Thinksoft Global Services' IPO ended on 1 October 2009 with subscription of 2.25 times. The IPO got bids for 82.12 lakh shares as against 36.46 lakh shares on offer.

Thinksoft Global Services had on 24 September 2009 extended the closing date of the IPO to 1 October 2009 from the earlier 24 September 2009 as the issue failed to garner sufficient subscription. Also the company had lowered its price band for its initial public offer (IPO) to Rs 115-125 per share from the earlier price band of Rs 120-130 per share.

The IPO was a mix of a fresh issue of 13.5 lakh shares and an offer for sale of 22.96 lakh shares by Gibraltar-based fund, Euro Indo Investments.

Thinksoft Global Services is a financial software testing company. The company plans to set up a Rs 16-crore facility at the Madras Export Processing Zone in Chennai. The proposed 400-seat facility, to be funded with the IPO proceeds, would involve Rs 13.7 crore for infrastructure development and Rs 1.66 crore for equipment.

The expansion of the unit would help the company expand to newer markets apart from its base in Europe, which accounts for 60% of its revenue.

On a consolidated basis, company's net profit rose 47.55% to Rs 14.49 crore on 24.06% rise in sales to Rs 92.09 crore in the year ended March 2009 (FY 2009) over year ended March 2008.