Investors 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 was oversubscribed 64.9 times when it closed this evening, creating a history of sorts.
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.
Tech Mahindra, ranked 8th largest in terms of export revenues as per Nasscom 2005, entered the IPO market with a public issue of 12,746,000 equity shares of Rs. 10 each in the price band of Rs. 315-Rs. 365 per equity share.
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, from Rs 945.6 crore for the year ended March 31, 2005 . Profit after tax also grew by 130%, from Rs 102.4 crore for the year ended March 31, 2005 to Rs 235.4 crore for the year ended March 31, 2006. For the June quarter, the revenues were Rs. 591.1 crores and PAT was Rs. 106.6 crores.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited and ABN AMRO Securities ( India) Private Limited. The registrar to the issue is Intime Spectrum Registry Limited
# posted by YoIndian @ 8:50 PM
