Tulip seeks funds through equity shares

NEW DELHI: Tulip IT Services Ltd has filed its Draft Red Herring

Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a public issue of 90,00,000 equity shares to raise funds for the expansion of its IP/VPN wireless network covering 130 cities.

Of the total equity float, 81,00,000 equity shares are for the public, while the balance 9,00,000 shares are reserved for eligible employees of the company.

The Delhi-based company said in a statement that the issue would constitute 31.03 per cent of the fully diluted post issue paid up capital of the company, while the net offer to the public would constitute 27.93 per cent of the fully diluted post issue paid up capital of Tulip.

While the face value of the equity shares is Rs 10 each, the pricing of the issue is to be determined through 100% book building process. Upto 50 per cent of the issue size shall be allocated on a discretionary basis to Qualified Institutional Buyers (QIBs), and not less than 35 per cent of the issue shall be available for allocation on a proportionate

basis to retail bidders.

The equity shares are proposed to be listed on the National Stock Exchange (NSE) and the Stock Exchange, Mumbai.