The Hindu : Business : TCS hopes to raise Rs. 5000 crores

Online edition of India's National Newspaper
Thursday, Jul 29, 2004

Business

Business

TCS hopes to raise Rs. 5000 crores

MUMBAI, JULY 28. The Tata-controlled Tata Consultancy Services hopes to raise about Rs. 5,000 crore from the capital market through the initial public offering which opens tomorrow.

The public offer for 5.54 crore shares of Re 1 each with an indicative price band of Rs. 775-900 per equity share will close on August 5. Apart from the 5.54 crore shares on offer in the IPO, the Tata company has made provision to issue additional 15 per cent shares under a greenshoe option.

The offer, which is through the book-building route, comprises a fresh issue of 2.27 crore shares and an offer-for-sale of 3.26 crore by Tata Sons and certain shareholders of TCS.

The IPO will consist of 4.99 crore shares, which includes 2.99 crores to Qualified Institutional Bidders and 74.86 lakh to non-institutional bidders or (high net worth individuals). The company has also reserved 55.45 lakh shares for employees of TCS division, TCS Ltd. and Tata Sons.

The net proceeds of the fresh issue of shares would be used to pay a purchase consideration to Tata Sons, for transfer of the TCS division to the company, while the remaining proceeds would be deployed for general corporate purposes.

The current paid-up capital is Rs. 45.55 crores and TCS' equity capital after the offer would be Rs. 47.83 crores.

TCS shares will be listed on the Bombay National stock exchanges.

J M Morgan Stanley Pvt. Ltd., DSP Merrill Lynch Ltd. and J P Morgan India Pvt. Ltd. are the lead managers. — PTI

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