Foreign Investors Evince Keen Interest In TCS Public Issue

Kolkata, July 30 | Updated: Jul 31 2004, 06:18am hrs
Large number of foreign investors have evinced interest in the initial public offering (IPO) of Tata Consultancy Services Limited (TCSL), the bids of which were opened on Thursday and got oversubscribed on the subsequent day.

Addressing a press conference here on Friday, executive vice-president of TCSL Phiroz Vandrevala said that the company had filed the prospectus both in the formats of Indian GAAP and US GAAP keeping in mind the interest of the foreign investors, which were likely to bid for the issue.

He said that post-issue, TCSL would pay Rs 2300 crore to Tata Sons for transferring the business at book value.

IOB To Provide Loans For TCS IPO

Chennai: Indian Overseas Bank plans to provide loans up to 65 per cent for those bidding for the IPO of TCS at 10 per cent interest rate. We have set the interest rates at one percentage pointless that PLR (Prime Lending Rate), IOB chairman and MD SC Gupta said.
Though, the bank has not set aside any amount for the TCS offer scheme, Mr Gupta said that IOB was willing to provide over Rs 250 crore as per the scheme.

Out of the total pre-issue capital, five per cent would be in the form of primary market offering, another five per cent in the form of sale of Tata Sons holding, and four per cent stake sale by other promoters.

After the issue, Tata Sons holding in TCSL would be in excess of 86 per cent.

Asked whether the greenshoe option would be exercised within 30 days from the date of listing, he said that if market price fell below the issue price, then the stabilising agent would exercise the option.