Financial Daily from THE HINDU group of publications
Sunday, Aug 08, 2004
Info-Tech - IPOs
Markets - IPOs
TCS issue price fixed at Rs 850
The TCS Chief Executive Officer, Mr S. Ramadorai, and the Chairman, Mr Ratan Tata, at a press conference to announce the price of the company's IPO in Mumbai on Saturday. - Shashi Ashiwal
Mumbai , Aug. 7
TATA Consultancy Services (TCS) announced today that the cut off price for the initial public offer is at Rs. 850 per share. The price band was Rs 775 - Rs 900 per share. The IPO was oversubscribed 7.7 times and over 13 lakh bids were received, announced the software services major.
At the issue price of Rs 850, the size of the offering amounts to Rs 5420 crore. This includes the green shoe option of Rs 706 crore.
The retail portion of the IPO was subscribed 3 times, and the non-institutional portion - for high net worth individuals and corporates - was subscribed 22 times, said Mr Ramadorai, Chief Executive Officer, TCS Ltd.
The share would be listed in the stock exchanges by the last week of August, said the lead mangers to the issue. The offer was reserved to the extent of 60 per cent to qualified institutional buyers, 15 per cent to non-institutional investors and the remaining 25 per cent to retail investors.
"Our intention is to have TCS continue to please investors. The pricing has been fixed at a level that would provide an attractive upside to investors as a token of our gratitude to their overwhelming response to the issue," said Mr Ratan Tata, Chairman, Tata Sons, at a press conference here today.
Encouraged by the response to this offer, Mr. Tata said that his intentions are that newer companies of the group would go public once they attain a certain critical mass and scale.
The IPO comprised 5.55 crore shares of Re.1 each. In addition, the green shoe option offered 83 lakh shares. The issue closed on Thursday, August 5.
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line