Tech Mahindra issue priced at Rs 365 | india | Hindustan Times
Today in New Delhi, India
Jul 28, 2017-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Tech Mahindra issue priced at Rs 365

The issue, which closed last Friday, has been oversubscribed 72.04 times due to demand from institutional investors.

india Updated: Aug 07, 2006 20:11 IST

Telecom IT solutions provider Tech Mahindra Ltd has priced its initial public offering (IPO) at Rs 365 per share, the top end of its estimated price band of Rs 315-365 per share, investment banking sources said.

The IPO of Tech Mahindra, a joint venture between Mahindra & Mahindra and British Telecom, closed on Friday last week with a huge oversubscription of 72.04 times primarily driven by the demand from institutional investors.

Market observers said this was the highest oversubscription for any IPO in this fiscal so far and was expected to end a long subdued phase in the primary market.

The issue received robust response from the qualified institutional buyers, particularly the foreign investors, with the QIB portion of the IPO receiving over 104 times subscriptions.

Tech Mahindra had launched a public issue of 12,746,000 equity shares of Rs 10 each in the price band of Rs 315-365 per equity share through a 100 per cent book building process on August 1 and the issue was oversubcribed on the very first day of the offering.

The issue constitutes 11 per cent of the post issue paid up capital of the company and the net issue constitutes 10 per cent of the post issue capital.

The company intends to use the IPO proceeds partly for expanding its existing facilities at Pune.

Kotak Mahindra Capital Company Limited and ABN AMRO Securities (India) Private Limited were the book running lead managers to the issue, while Intime Spectrum Registry Limited was the registrar to the issue.

Sixty per cent of the issue were reserved for QIBs, 30 per cent for retail bidders and 10 per cent for non institutional bidders.

The public issue consisted of a fresh issue of 3,186,480 equity shares and an offer for sale of 9,559,520 equity shares by Mahindra and Mahindra Limited and British Telecommunications Plc. Out of the total issue, 1,158,790 equity shares have been reserved for eligible employees.

Tech Mahindra, founded in 1986 and formerly known as Mahindra-British Telecom Ltd, is focussed on providing IT solutions to the telecommunications industry.