DTL Oversubscribed 20 Times On Closing

Mumbai, April 19 | Updated: Apr 20 2004, 05:30am hrs
Datamatics Technologies Ltd (DTL), the first-ever initial public offer (IPO) of a business process outsourcing (BPO) company, received an overwhelming response from the retail investors. The IPO was oversubscribed 20 times on the last day of subscription (on Monday).

According to merchant banking sources, the retail category was oversubscribed by about eight times, while the qualified institutional buyers (QIBs) segment was oversubscribed 16-17 times. The non-institutional buyer (NIB) category was oversubscribed three to five times, according to the sources.

The DTL IPO opened on April 12. The company had offered 1.03 crore equity shares of Rs 5 each via a 100 per cent book building route. The price band for the issue was fixed at Rs 101-110. DTL will list its shares on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange (NSE). The offer comprised of a fresh issue of 85 lakh shares of Rs 5 each and and an offer for sale of 18 lakh shares of Rs 5 each. The paid-up equity capital of the company post IPO issue has risen to Rs 20.29 crore from the Rs 16.04 crore earlier.

The offered equity capital represents 25.39 per cent of the fully diluted post-issue paid-up equity capital of the company.

The offer for sale was made by the promoter Lalit Kanodia and his family. IL&FS, which had picked up 4 per cent equity in DTL a few months back, was not allowed to divest its stake.