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Hughes Software IPO raises Rs 6,000 cr

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CIOL Bureau
New Update

BANGALORE: Hughes Software Systems (HSS), the first book-built

public issue, received subscription of Rs 6,000 crore ($1.4 billion) as against

the target of Rs 275 crore, said the book-running lead manager for the issue of

Kotak Mahindra Capital Company. The issue price has been fixed at Rs 630 per

share. The IPO, with a book-built portion of 39,37,500 shares (90 per cent of

the total issue), was offered in the price band of Rs 480-630 per share. The

book was open for subscription from September 22 to 28.

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With the maiden IPO, the holding of the three primary promoters, Hughes

Electronics Corporation, US, HNS India and HNS Mauritius' holdings will be

reduced to 56.14 per cent from the current 76.19 per cent.

Kotak Mahindra Chairman Uday Kotak said that the demand was segregated in the

following manner: Mutual funds (13 per cent), individual high net worth

investors (25 per cent), individual investors subscribed for less than 1,000

shares (14 per cent), FIIs (21 per cent), domestic institutions (5 per cent),

corporates (17 per cent) and NRIs and OCBs only 1 per cent.

The allotment of the shares, Mr. Kotak said, would be based on the quality of

investors with a long-term commitment. The 10 per cent fixed price public offer

comprising 4,37,500 shares will open for subscription from October 7 to 12 and

will be offered at the same price of Rs 630, in view of the SEBI guidelines,

said Mr. Kotak. The confirmed allotment would be completed within 30 days of the

closure of the issue and the shares would be listed in the first week of

November. The shares would be listed at the Delhi Stock Exchange, which is the

regional stock exchange, and also at the BSE and the National Stock Exchange.

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