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Lanco Global to go public

Our Bureau

MUMBAI, July 16

LANCO Global Systems Ltd (LGS), a Hyderabad-based 100 per cent export-oriented IT company, is entering the capital market with an initial public offer of 26,70,000 equity shares of Rs. 10 each for cash at par, aggregating to Rs. 2.67 crores, according to a press release here. The issue opens on July 21 and closes on July 26.

Promoted by the Lanco group, which has interests in diverse fields, Lanco Global is headed by Mr. P.V. Subramanyam, CEO and Director, according to the release.

The company focuses on developing Web technologies, e-commerce and Net-centric solutions. The total cost of the project, which has been appraised by Global Trust Bank, is Rs. 11.85 crores, the release said.

Of the total equity of Rs. 10.65 crores, the promoters and associates have brought in Rs. 7.89 crores, the release added.

It said the issue is meant to part-finance the setting up of a software development centre to develop Web-based applications and consultancy and acquire a software company in the US. However, among the risk factors listed in the offer document, the compa ny states that it is yet to identify the target software company in the US as well as obtain the necessary permission from the Reserve Bank of India for the proposed takeover.

Also, two of the group companies _ Lanco Leasing and Finance Ltd, incorporated in 1993, and Lanco Steels Ltd, incorporated in 1995 _ are yet to commence operations.

The shares are proposed to be listed on the stock exchanges of Hyderabad, Mumbai, and Ahmedabad.