13 lakh bids set new record for book-built issues in india

TCS Prices Share At Rs 850

Posted: Sunday, Aug 08, 2004 at 0050 hrs IST
Updated: Sunday, Aug 08, 2004 at 0050 hrs IST

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Mumbai, Aug 7: Tata Consultancy Services (TCS) Ltd, has fixed a cut-off price of Rs 850 per share for its initial public offer (IPO). This is against the price band of Rs 775-900 set by the company. TCS would be listing its shares on the bourses during the last week of this month. The offer closed on August 5.

FE had reported on Saturday that the issue was likely to be priced between Rs 850 and Rs 875.

“The company will be listing its shares in the overseas markets but the timeframe has not been decided,” said Tata group chairman Ratan Tata at a press conference in Mumbai. The TCS IPO, the country’s largest to date, has generated a demand of Rs 40,000 crore. The 13 lakh bids received have set a new record for book-built issues.

As per preliminary estimates, including the green-shoe option, the issue was subscribed approximately 7.7 times on an overall basis, and 2.2 times at the higher end of the band. TCS’ CEO S Ramadorai said, “The price has been set at Rs 850 since this would be an attractive level to investors.” At this issue price, the offering size stands at Rs 5,420 crore, which includes a green-shoe option of Rs 706 crore.

Commenting on the expansion of TCS’ board, Mr Tata indicated that it would meet within the next two months to decide on the size. On the possibility of other group companies going public, Mr Tata said, “Some of the newer companies are yet to reach critical mass. Once they do, it will be our intention to go to the market.”

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