TCS IPO : An over view

With the much-awaited
29 July 2004

The 5,000 crore TCS IPO would catapult the company to be one of the biggest wealth creator in the country

With the much-awaited Initial Public Offer (IPO) hitting the capital markets on today, Indian investors' wait to capture a pie of the software giant is finally over. The attractive price band for bidding being fixed between Rs775 to Rs900 per share, is a windfall for investors in the share bazaar, who had pegged it at Rs1,100 per share as the upper limit.

The Rs5,000-crore IPO opening coincides with the birth centenary of JRD Tata, who was at the helm of the Tata group for over four decades. The issue closes on August 5, 2004 and is attractively priced for investors including those from retail segment, according to merchant banking sources.

This would result in a minimum over subscription of over five times, they said, adding, this would catapult the company to be one of the biggest wealth creator in the country.

TCS will offer 5.54 crore equity shares of Re one each, including a fresh issue of 2.27 crore shares, in its IPO through a book building route.

The issue also comprises offer for sale of 3.26 crore shares by Tata Sons Ltd and certain other shareholders of TCS, and a further greenshoe option by Tata Sons for 8.31 lakh shares each.

The authorised share capital of the company is Rs60 crore and the current paid up capital is Rs45.55 crore. The equity capital after the offer would be Rs47.83 crore, according to the prospectus filed with the market regulator Securities and Exchange Board of India.