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Omnitech InfoSolutions proposes to enter the capital markets on July 19, 2007 with a public issue aggregating Rs 35 crore in the price band of Rs 90 to Rs 105 per equity share of Rs 10 each, including reservation for employees aggregating to Rs 1.75 crore.

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	Valuationwise Omnitech is a good stock. The price band is very cheap. It is not an extraordinary company looking at the business. If an investor is ready to wait for two years as the company is in process of acquiring new clients and professionally sound company, then one can earn good amount of money. People can apply for the issue.
Manish Bhatt (Prabhudas Lilladher)	Apply	Omnitech Info IPO looks to be good. People can apply for the issue.
SP Tulsian (Investment Advisor)	Apply	The IT services and products of the Omnitech mainly include business availability services, business continuity services, system integration solutions and framework solutions and products. The company has estimated fund requirement of Rs 37 crore for acquisition and expansion. The cash flow of the company is quite under strain with book debt of Rs 25.36 crore as 31-03-07 on total income of Rs 77.80 crore for FY 07. Even the debt of the company was high at Rs 9.54 crore and sundry creditors of Rs 6.78 crore.   Maybe, to tide over the financial crunch, this issue has been planned. No doubt, the transformation of the company has been good with improvement in financial performance, but is it sustainable and scalable? Tax liability which was at about 7% for FY 07 would also rise in the coming years. If acquisitions do not get materialized, the company plans to set up new technology centre which would have longer gestation.   The company is an average kind of IT service provider, where many other similar stocks are available in the secondary market. Investment can give mediocre return with a longer time horizon.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UTI Bank is the BRLM and India Infoline is the Co-BRLM for the issue. This issue is being made through a 100% book building process wherein upto 50% of the net issue shall be allotted on a proportionate basis to qualified institutional buyers (QIBs). The equity shares are proposed to be listed on BSE and NSE.

Omnitech InfoSolutions proposes to utilize the net proceeds of the issue to fund acquisitions and strategic investments and/or to alternatively set up new technology center; to set up overseas offices for business expansion; and to enhance existing facilities.

The company offers a wide range of IT services and products such as business availability services, business continuity services, systems integration solutions, framework solutions and products. In business availability services, it provides services such as infrastructure management, application management and software testing. In business continuity services, it provides services such as disaster recovery management and disaster recovery consulting and auditing. 

The Company has received sanction from MIDC for allotment of 14,161 sq. mtrs of land at Rajiv Gandhi Infotech Park, Hinjawadi, Pune. 

Omnitech has a large client base across the globe in different industry segments like BFSI (Banking, Financial Services & Insurance), Manufacturing, Utilities, Services, Government bodies, etc. Its clients include amongst others, prominent companies such as HDFC Standard Life Insurance Company Limited, CRISIL Limited, WorldSoft Technologies Inc., Ami Impex Co.Ltd. and Emond bvba

To achieve the growth, the company has adopted a business strategy to enhance offerings, to expand the client base through the acquisition of new clients and to penetrate into new markets such as USA and Canada, UK, Belgium and other European countries, Japan and GCC countries.  The company has total income of Rs 77.80 crore and earned PAT of Rs 11.83 crore for the year ended March 31, 2007 as against total income of Rs 54.16 crore and PAT of Rs 7.53 crore for the year ended March 31, 2006.