The company aims to raise approximately Rs. 470 million to Rs. 480 million through the fresh issuance of 6.97 million shares.
About the company and the issue
Neoteric Infomatique Ltd (Neo) is into the business of distribution of IT-Hardware products. The company started as a reseller in 1991 and thereafter in the year 1997, commenced the business of distribution. Neo caters to the domestic market and has network of 36 branches, 4 logistic centres and 4 additional warehouses catering to over 7,200 channel partners in around 350 cities. Neo primarily operates in the domestic market. Monitors, PCs, components such as hard disks, motherboard, RAM and peripherals such as printers form its key offerings. Neo has relationship with around 20 vendors and its key vendors include Samsung, Apple, HP, Hitachi, Logitech, BenQ, Wipro, Lenovo and Moserbaer.
Neoteric is the sixth largest IT Hardware distributor in India. The company's revenues grew at a compounded rate of 40 per cent between 2004-05 and 2006-07. This was largely driven by the growth in volumes of computer hardware products and due to the increase in the number of relationships with some of the key IT Hardware vendors. In 2006-07, the company reported a net profit of Rs 36.8 million on a turnover of Rs 4,885.4 million. The company's return on capital employed (RoCE) and return on equity (RoE) was 28.4 per cent and 28.6 per cent, respectively, in 2006-07.
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