ZYLOG SYSTEMS LTD - IPO

Type of Issue : Book Built
Issue Opens: 20 July, 2007
Issue Closes: 25 July, 2007
Issue Size : 3,600,000 (No. of Shares)

Lower Price Band: Rs.330
Upper Price Band: Rs.350
Total Issue Size: RS.126 Crores

Application Multiple: 20 and in multiples there off starting with at least 20 shares.

Maximum Shares: 280 (for Retail)

Information URL : http://www.zsl.com/
Prospectus URL : http://www.sebi.gov.in/dp/zylongdraft.pdf

Company Details :
Address : NO. 82/40, FIRST MAIN ROAD, CIT NAGAR, NANDANAM, CHENNAI - 600 035.
Email : secretarial@zylog.co.in
Contact Details : 914442867000 /914424326420 (fax)

ISSUE Description:
Company Background:

Zylog Systems Ltd. is a certified 9001:2000, 100% EOU company. The company provides technology services to client specific requirements. The services are provided onsite/offsite/ offshore or in a combination. Almost a third of their revenue is earned through partnerships with Systems Integrations / Solution Providers and Value Added Resellers (VARs). This unique business model have created specialization and focus in industry verticals such as Telecom, BFS & Retail.

The proceeds of the fund will be used to set up two offshore development centres, to fund acquisitions and strategic investments.

Key Financials for the year ended March 31, 2007
Revenue Rs.4,081.17Mln, PAT Rs.546.95 Mln, EPS Rs.50.91, RoNW 26.27%.

Recommendation:

P/E multiple of only 7 versus 15 of the industry peers leaves a lot for listing gains.