Investor Points Datanet Systems Ltd Issue Details Offer opens 23rd August Offer closes 28th August Type Equity Size Rs31.5mn Shares offered 3. India Infoline view Datanet Systems Ltd is a Bangalore-based solutions provider for the banking sector. The company currently focuses on workflow automation and banking solutions and has products such as BPRO, Teleserver, Bankflow, ABB, SmartABB, Telebanker, webbanker and telewebbanker. However, in the banking solutions arena, there are already established players like Infosys, Polaris, Kale, PSI etc, who have very strong presence in the field, even in the domestic markets, these companies are very strong. Yet another cause of concern is that the company plans to derive a major chunk of its revenues from banking solutions.
Upfront investments involved in such type of businesses are also very high.
Thus, in the event of the product not succeeding, the company will be under heavy financial pressure. Moreover, the company does not have any tie-ups or alliances. The financial statements for the past years also do not exhibit a healthy picture. The company has incurred losses for most of the past years. PAT for FY00 is jus Rs0.6mn, which is too small a size for tapping the primary market.