GSS America attracts premium on debut

GSS America Infotech was trading at Rs 471.50 at 13:13 IST on BSE a premium of 17.85% over IPO price of Rs 400.  

IT solutions company GSS America Infotech debuted at its issue price of Rs 400 on BSE. The scrip touched a high of Rs 479.90 and low of Rs 400 so far during the day.

The counter saw volumes over 67.32 lakh shares on BSE

At the current price of Rs 471.50, the scrip trades at a PE multiple of 10.74, based on its annualised nine-month ended December 2007 EPS of Rs 43.90

GSS America Infotech had raised Rs 140 crore from primary market thorough public issue of 34.97 lakh equity shares in January 2008. The public issue was subscribed 1.08 times. It had fixed the IPO price at the lower end of the price band of Rs 400-440.

GSS America Infotech plans to utilise the issue proceeds for setting up a global delivery centre at Hyderabad and meeting working capital requirement. The firm already has two global delivery centres in the US, besides Hyderabad.

GSS America Infotech is a total IT solution provider spanning consulting, enterprise application integration and infrastructure management/managed services. Its web-based business service management product Control-M gives administrators and users an intuitive and easy way to control and manage the business environment.

The company reported net profit of Rs 43.76 crore on net sales of Rs 203.83 crore in nine month ended December 2007