vengabeats
Nilesh Nagdev
nvestors appear to be back in the primary market with a vengeance. They provided an encouraging response to IPO of Tech Mahindra, a leading Indian provider of IT solutions to telecom companies. The company's IPO oversubscribed 72.05 times when it closed this evening, creating a history of sorts, as per press release.
Analysts say this is highest oversubscription for any IPO in this fiscal so far and it is expected to revive the primary market ending a long spell of lull. Highlights
The issue constitutes 11% of the post issue paid up capital of the company and the net issue constitutes 10% of the post issue capital
The company proposes to use the proceeds from the fresh issue for creating facilities for expansion. The company has been granted land measuring 98,923 square metres located at Rajiv Gandhi Infotech Park in Hinjewadi, Pune for this purpose.
The company has registered a 31% revenue growth as compared to its revenues the year before. The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore (Rs 12.42 billion), from Rs 945.6 crore (Rs 9.45 billion) for the year ended March 31, 2005. Profit after tax also grew by 130%, from Rs 102.4 crore (Rs 1.02 billion) for the year ended March 31, 2005 to Rs 235.4 crore (Rs 2.35 billion) for the year ended March 31, 2006. For the June quarter, the revenues were Rs 591.1 crore (Rs 5.91 billion) and PAT was Rs 106.6 crore (Rs 1.06 billion).
The book running lead managers to the issue were Kotak Mahindra Capital Company Limited and ABN AMRO Securities (India) Private Limited. The registrar to the issue was Intime Spectrum Registry.
Analysts say this is highest oversubscription for any IPO in this fiscal so far and it is expected to revive the primary market ending a long spell of lull. Highlights
- Total issue size 12746000
- Total bids received 918321952
- Total bids received at Cut-off price 25831504
- No of times issue is subscribed 72.05 (NSE website)
- Qualified institutional buyers - 104.13 times
- Non institutional investors - 142.83 times
- Retail individual investors - 7.84 times
- Employees - 1.39 times
The issue constitutes 11% of the post issue paid up capital of the company and the net issue constitutes 10% of the post issue capital
The company proposes to use the proceeds from the fresh issue for creating facilities for expansion. The company has been granted land measuring 98,923 square metres located at Rajiv Gandhi Infotech Park in Hinjewadi, Pune for this purpose.
The company has registered a 31% revenue growth as compared to its revenues the year before. The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore (Rs 12.42 billion), from Rs 945.6 crore (Rs 9.45 billion) for the year ended March 31, 2005. Profit after tax also grew by 130%, from Rs 102.4 crore (Rs 1.02 billion) for the year ended March 31, 2005 to Rs 235.4 crore (Rs 2.35 billion) for the year ended March 31, 2006. For the June quarter, the revenues were Rs 591.1 crore (Rs 5.91 billion) and PAT was Rs 106.6 crore (Rs 1.06 billion).
The book running lead managers to the issue were Kotak Mahindra Capital Company Limited and ABN AMRO Securities (India) Private Limited. The registrar to the issue was Intime Spectrum Registry.