Subra Systems files for Tk30cr IPO

Key Financials:-

• The company will raise Tk30 crore through IPO
• Net profit was Tk8.38 crore
• Net revenue was Tk17.48 crore
• Estimated size of country's software industry is $700 million
• 5 lakh out of 6.5 lakh registered freelancers are now active
  

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Subra Systems Ltd wants to raise Tk30 crore from the stock market through an initial public offering (IPO) at a fixed price method for expanding business.

The principal activities of the company are to provide a comprehensive integrated business software solution. Along with Enterprise Resource Planning (ERP) and other customised software, the company also provides services related to web pages and data transmission.

The Subra Systems Ltd has recently applied to the Bangladesh Securities and Exchange Commission (BSEC) to raise the fund by issuing three crore ordinary shares.

The software solutions provider wants to allocate Tk18 crore of its IPO proceedings for setting up a centre for research and development and around Tk10 crore for a data centre.

Major competitors of the company are Aamra technologies, Intech, Genex Infosys, Divine IT, Southtech, Ogroni Informatix, DataSoft Systems Bangladesh, Mediasoft Data Systems, Technoheaven Consultancy, UY Systems and Dhurpodi.

According to the audited report for the year ended on 30 June, 2020, the company's consolidated net profit was Tk8.38 crore, which was higher than the previous year's consolidated net profit of Tk7.69 crore.

During the period, its consolidated net revenue was Tk17.48 crore, a 14.69% increase from that of the previous year.

At the same time, its consolidated earnings per share was Tk2.20 and the net asset value per share was Tk14.87 as of 30 June, 2020.

The company's authorised capital was Tk100 crore, while its paid-up capital was Tk50 crore and the post paid-up capital was Tk80 crore.

Subra Systems Ltd started business on 25 March, 2008.

A company official said they provide software solutions to customers across the country and demand for their software is growing gradually.

He further said, "We have not been exporting software yet. But after establishing a data centre, the company's business will expand further."

The software and information technology-enabled services (ITES) industry is one of the most promising sectors in Bangladesh, with several growth drivers that consists of a large pool of efficient young professionals.

The government is making large investments in hi-tech parks in the hope of bringing local and foreign investments.

The government earned about $1 billion last year through IT services, according to the Bangladesh Association of Software and Information Services (BASIS). The government now wants to earn around $5 billion within 2021 from the ICT sector by generating jobs for 20 lakh youths.

Industry insiders said the country's software industry is currently estimated to be worth around $700 million, where approximately 300,000 professionals, mostly IT graduates, are employed.

According to the BASIS, there are over 4,500 registered software and ITES companies, along with a few hundred unregistered small and home-based software and IT ventures engaged in business in local and international markets.

According to the ICT division, about 5 lakh out of 6.5 lakh registered freelancers are regularly working in the country.