India's biggest IPO begins to a slow start

MUMBAI: India kicked off its biggest ever initial public offering, a $1.2 billion float by Tata Consultancy Services Ltd. (TCS), as investors placed orders for a slice of the country's largest software outsourcing company.

The IPO got off to a slow start, but analysts expect demand to pick up in coming days.

The unit of India's second-largest private conglomerate, Tata, has grown strongly along with a boom in outsourcing to India of foreign software design, call centers and back-office services.

TCS marks Asia's second-largest technology IPO this year, after Chinese chipmaker Semiconductor Manufacturing International Corp. raised $1.8 billion in March.

Data from the National Stock Exchange showed investors placed orders for 7.5 million shares in the first 45 minutes of the offer, representing 13.5 percent of the shares being sold.

Data from the Bombay Stock Exchange, which is also handling bids for the IPO, was not available immediately.

The shares will be priced between 775 rupees and 900 rupees.

The shares are a combination of a fresh issue and an offer for sale by existing shareholders, together accounting for 13 percent of the enlarged capital base.