Incorporated in 1995, Zylog Systems Limited (ZSL) is a mid-sized solution based IT services provider, offering a wide array of service offerings to multiple verticals. Zylog offers a wide range of services including Application Development, Business Intelligence & Data Warehousing, Package Implementation, Testing etc across multiple domains.
ZSL has adopted a domain specific approach. BFSI contributes 34% of the revenues, telecom contributes about 22% of the revenues. The Company also focuses on Pharma, manufacturing and retail each contributing ~8% of the revenues for FY07.
ZSL's business mix is currently onsite centric (80% in FY06 and ~82% in FY07E). In order to cater to the offshore requirements of existing clients, as well as capture new business with its offshore presence, the company is expanding its offshore infrastructure. Zylog proposes to develop two Offshore Delivery Centers at Sholinganallur and Siruseri in Chennai respectively. With the planned increase in offshore capabilities, Zylog would be able to move greater composition of work offshore and position itself as a midsized offshore service provider.
ZSL's revenues have grown at a CAGR of 58% over FY 03 – FY 07 to Rs 4,034mn ($100mn) and PAT has grown at a CAGR of 56% over the same period to Rs 541mn.
Opinion : Apply
IPO Information :
Public Issue Price: Rs. 330/- to Rs. 350/- Per Equity Share
Public Issue Open : July 20, 2007 to July 25, 2007
Public Issue Type : 100% Book Built Issue (Initial Public Offer IPO )
Public Issue Size: 36,00,000 Equity Shares of Rs.10/- each
Market Lot: 20 Shares
Minimum Order Quantity: 20 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE, NSE
Lead Manager: Motilal Oswal Investment Advisors Private Limited
Read : Zylog Systems an attractive investment: Motilal Oswal
Zylog Systems an excellent bet, say experts
