Hughes Software IPO oversubscribed

BANGALORE: Hughes Software Systems IPO has been oversubscribed 39 times,

collecting Rs 1,098 crore, from the fixed price portion of Rs 27.56 crore. The

issue, which opened on October 7 and closed on October 13, consisted of 4,37,500

shares of Rs 10 each at a premium of Rs 620 per share, a price of Rs 630 per

share. This fixed price public offer constituted only 10 per cent of the IPO, 90

per cent of which was offered to investors through the book-building route.

Collections made through the book-building route, bids for which closed on

September 28, amounted to Rs 6,000 crores. The size of the book-built portion

was Rs 248.06 crore. Total collections from the IPO thus amounted to Rs 7,098

crore (equivalent of $1.6 billion) for the total issue size of Rs 275.62 crore,

with 50,000 investors participating. While announcing the issue, the company had

said it was the first time that Indian investors would participate in a

book-building offer. The price of the fixed price offer was the price discovered

through the book-built process.

With the issue, the holding of the promoter group, consisting of Hughes

Electronics Corporation (US), HNS-India Inc (US) and HNS-Mauritius Holdings,

will drop from the current 76.19 per cent to 56.14 per cent of the company's

equity.