HCL Tech mulls IPO

HCL Technologies (HCLT) has decided to get

itself listed on the Indian market instead of its earlier plans of listing

on the Nasdaq. Recently, Sebi decided to allow infotech companies to offer

10 per cent of total equity to the public instead of the stipulated 25 per

cent applicable for all the non-infotech companies. HCLT will be the first

IT company to offer only 10 per cent equity to the public following the

Sebi decision.

Through its maiden public offering, HCLT is offering 1.42 crore equity

shares through the book building route. According to the draft offer

document filed with Sebi, of the total offer, 1.27 crore shares are being

offered through the book building route and the balance 14.2 lakh shares

would be offered to the public on fixed price basis after a price is

arrived at the end of the initial book building process. Kotak Mahindra

Capital is the book running lead manager to the issue.

According to the company, the price band for the bidders during the

book building process would be determined after the process of pre-market

surveys are completed by the book running lead manager.

Among the others firsts for this Delhi-based company, it will also be

the first company to offer an unconventional par value -- of Rs 4 -- in

its forthcoming public offering. HCLT has filed the draft prospectus with

Sebi on September 15.

According to the company, one of the main purposes with which the

recent IPO is planned is to fund acquisitions of software companies as a

major growth strategy. The other objectives of the issue are to list the

company's shares at the bourses to give more liquidity to the employees

who have shares under the company's ESOP scheme, to fund its capital

expenditure programme and to meet its working capital requirements.

Post-offer, the shares of the company will be listed at Delhi, Mumbai and

the National stock exchanges.

Under the company's employee friendly ESOP scheme, according to the

draft offer document filed with Sebi, the company has offered its

employees each equity share at a price of Rs 255 per share (face value Rs

4).