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Zylog Systems, a global IT solutions and services provider delivering technology- driven business solutions, is open for subscription with a public issue of 3,600,000 equity shares of Rs 10 each through 100% book building process.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	Zylog Systems is an excellent issue. Valuations are very good and reasonable. It is also good for portfolio investment. Management has good track record and company's track record also good. People should apply for the issue. It is expected to receive huge subscription so the listing price will be around Rs 700.
Manish Bhatt (Prabhudas Lilladher)	Apply	Zylog Systems looks to be good issue. People should apply for the issue.
SP Tulsian (Investment Advisor)	Apply	Zylog Systems is a global service provider delivering technology driven business solutions with its three tier engagement model comprising of onsite, offsite and offshore.   Having established themselves and due to prospects of increasing its business activities, the capex of over Rs 150 crore has been planned.   The equity of the company is increasing from Rs.12.85 crore to Rs.16.45 crore, while its business would see a rise of about 200% to 300%. The company would be creating tangible assets which would strengthen the balance sheet of the company. Even from the existing operations and on expanded equity base, the share is issued at a PER of 8.20 which is quite attractive. Post expansion topline and bottomline would improve sharply, thus giving lot of scope of appreciation to investors.   An excellent stock to apply

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The issue closes on July 25, 2007 and the price band at Rs 330 to Rs 350 per equity share of Rs 10 each.

The issue would constitute 21.89% of the fully diluted post issue paid up equity capital of the company.

Motilal Oswal Investment Advisors Private Limited is the BRLM for the issue and Karvy Computershare Private Limited is the registrar to the issue. 

The issue is being made through the 100% book building process wherein at least 60% of the net issue to the public shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), 5% of the QIB portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid bids being received at or above the issue price.

Further, up to 10% of the net issue to the public shall be available for allocation on a proportionate basis to non institutional bidders and up to 30% of the net issue to the public shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid Bids being received at or above the issue price. Further, upto 100,000 equity shares shall be available for allocation on a proportionate basis to eligible employees, subject to valid Bids being received at or above the issue price.
 
The company intends to utilize the net proceeds of the issue to set up two state of the art Offshore Development Centres (ODCs), to fund acquisitions and strategic investments and to meet the increasing working capital requirement. 

The company's total income has registered a CAGR of 66% from Rs 1473.17 million in FY05 to Rs 4081.17 million in FY07 and PAT has recorded a CAGR of 56% from Rs 182.87 million in FY 05 to Rs 548.59 million in FY 07. For FY06 the company's total income was Rs 2711.85 million and PAT was Rs 382.77 million.