Tech Mahindra IPO gets encouraging response

NEW DELHI: Investors have provided encouraging response to



Tech Mahindra IPO, by oversubscribing 64.9 times when it closed last

evening.






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 per cent of the post issue paid up capital of the
company and the net issue constitutes 10 per cent 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.






For the June quarter, the revenues were Rs. 591.1 crores and PAT was Rs. 106.6
crores.






The company has registered Profit after tax grew by 130 per cent, from Rs 102.4
crore for the year ended March 31, 2005 to Rs 235.4 crore for the year ended

March 31, 2006.






The revenue grew by 31 per cent to Rs 1242.7 crore for the year ended March 31,
2006 as compared to Rs 945.6 crore for the sequential year.






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