Markets seem to have got a whiff of the developments taking place at InfoTech
Enterprises, if we were to go by the share price movements on the bourses. The
scrip has almost quadrupled on the NSE from around Rs 100 at the beginning of
October 2001 to Rs 358 on December 27, 2001. This was backed by heavy volumes.
Pratt & Whitney (P&W) - world`s leading producer of commercial,
general aviation and military aircraft engines - a division of the US-based
conglomerate United Technologies Corporation (parent company of Otis Elevators
and Carrier Aircon), is set to acquire 18.4 per cent equity stake in InfoTech
Enterprises Ltd. (IEL). IEL is a software solutions company specializing in
Geographical Information Systems (GIS) software services with focus on a number
of vertical markets such as corporate, financial services, telecom,
transportation and local government.
Twelve lakh equity shares (priced at $6 (Rs 288) per share of Rs 10 each) and
three lakh share options convertible into identical number of equity shares at
$10 (Rs 480) per share of Rs 10 are proposed to be issued to P&W. The
company’s shares are currently trading at Rs 419 (52-week high Rs 424: low Rs
54). At present the company’s equity capital stands at Rs 6.12 crore.
Analytical Surveys, Inc. and Walden are the only two foreign equity holders in
the company with a total stake of 2.89 per cent.
At present, P&W is InfoTech’s among the valued customers. It has an
agreement for providing various services. This preferential offer is primarily
aimed at having a strategic long-term relationship with P&W. However,
according to the management, the proposed preferential offer would not result in
any change in control and Indian promoters retain management control.
Nevertheless, Pratt & Whitney would be entitled to appoint a nominee
director on the InfoTech board.
For H1 FY 2002, while InfoTech’s total income increased by 93 per cent to
Rs 45 crore, its operating profit increased by 122 per cent to Rs 19 crore with
OPM (ex. OI ) increasing by 510 bps to 39.5 per cent. Its net profit improved by
88 per cent to Rs 12.61 crore after considering deferred tax of Rs 1.03 crore as
against nil in H1 FY 2001.
IRIS