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HCL Technologies IPO creates history with total demand crossing Rs 20,000 cr.

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CIOL Bureau
New Update

BANGALORE: The initial public offering of HCL Tehnologies has created a milestone in the Indian corporate history with total demand for the offer crossing Rs 20,000 crore. The book built portion of the issue was oversubscriber 27 times.

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According to a company release, the total demand for the IPO touched Rs 20,100 crore. The issue price was set at Rs 580, which is the upper limit of the indicative price band of Rs 500-580.

The IPO was offered to the retail investors through the book building process through the national network of The National Stock Exchange (NSE) and The Stock Exchange, Mumbai (BSE). The release said that the gross proceeds of the Book Built Portion comprising 12,780,000 shares amount to Rs 741.24 crore.

The fixed price portion, which will open for the public on December 10, will be offered at Rs 580 per share and comprise of 1,420,000 sharess. Total issue size will amount to Rs 823.6 crore. Following the completion of the IPO process, the equity share capital of the company will increase to Rs 55.47 crore.

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Commenting on the IPO, HCL Technologies President and CEO Shiv Nadar said, "HCL Technologies is dedicated to building long standing relationships with all our stakeholders and creating outstanding value for our shareholders. We plan to deploy the proceeds of the issue to build and acquire skills and offer services that will further strengthen our position in the global IT market."

All retail allocation will be made in consultation with the regional Stock Exchange at Delhi and a nominated public representative Securities and Exchange Board of India (SEBI ). All retail allotment will be in line with the guidelines set by SEBI, the release added.

Kotak Mahindra Capital Company and ICICI Securities and Finance Company were the Joint Book Runners and JM Morgan Stanley and DSP Merrill Lynch were the Lead Managers to the IPO. The Book Built Portion comprised 90 per cent of the total issue of which 75 per cent was reserved for the wholesale (institutional) investor and 15 per cent was reserved for the retail investor.

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