Computer training cosjoin IPO band-wagon

MUMBAI, NOV 22: Even as a host of software issue have started flooding the capital market, computer training institutes have now joined t...

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MUMBAI, NOV 22: Even as a host of software issue have started flooding the capital market, computer training institutes have now joined the IPO (initial public offering) band-wagon. Software training firm Software Technology Group International Ltd (STG) will launch its IPO at a premium on December 9.

Cashing in on the software boom on the capital market, STG is entering the capital market with a public issue of 31,87,500 equity shares of Rs 10 each for cash at a premium of Rs 56 per share aggregating Rs 21.04 crore. “This company was involved in computer training for the last many years. It entered the software development only recently,” said an analyst.

“The funds are being raised mainly for the expansion of STG’s software development division. The company plans to set up offices in the UK and Australia and an offshore software development centre and corporate office near Delhi. It also plans to establish training centers in three cities in western India, besides expanding its franchise network inIndia and abroad,” said company chairman Yogesh Vaidya while announcing the public issue here on Monday.

“The company never thought about going public before the software boom shook the Indian markets. Now everybody wants to take advantage of the boom. All software issues are coming at a premium,” analysts said. The promoters stake in this closely managed company would come down from 99.02 per cent to 74.27 per cent post issue. STG, which is into training aspiring and practising software professionals, now wants to enter software sector in a big way and proposes to set up a marketing office in the US, the UK and Australia. Other expansion projects of the company include setting up own centres in Mumbai and Pune.