FCS Software plans issue at Rs 40 a share

FCS Software Solutions Ltd., a Noida based IT services company is offering 35 lakh equity shares of Rs 10 each issued at a premium of Rs 40 per equity share aggregating Rs 17.5 crore. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The company revenue has grown from Rs 43.86 crore in 2002-03 to Rs 67.06 crore in 2003-04. For the first nine months of 2004-05, it had generated revenues of Rs 61.64 crore. The growth of FCS till date has largely been from its internal cash accruals, company executives said.

FCS Software has around 600 people and services its clients from its existing facilities at Noida and San Jose, US. The company has initiated the process to acquire a building next to its existing facilities. Once the company takes possession, it would be made functional within three-five months.

The facility would have capacity to have 300 additional people. According to Vineet Narang, vice-president, offshore service group, "More and more US-based organizations are exploring the idea of setting up teams in India to reduce development expenses. FCS over the last 11 years has developed strong and validated processes to cater to the growing needs of these companies."

The company has a software development centre in Noida, registered as 100 per cent export-oriented units with STPI-Noida, and another office in California.