TCS IPO subscribed 92% on 1st day

MUMBAI: The TCS IPO has been subscribed 92 percent towards the end of first day. The maximum bid was of Rs 825 and most bids seem to be coming in between Rs 775 and at Rs 800. The Qualified Investment Bankers (QIB) segment for the TCS IPO has been fully subscribed.

Most of the analysts are of the opinion that retail investors would enter in the coming days. According to them bidders are testing waters right now because of the previous experience they had with IT IPOs and opted for lower end of price band.

The mega TCS issue opened this morning and by 1 pm, the IPO had been subscribed 50 percent but the second half of the day lacked interest of buyers. Most bids have come in between Rs 775-800. Twenty-five per cent of the 55 million TCS shares are on offer for small investors.

Analysts expect that retail bidding would pick up and the company is expected to be listed at Rs 850. The week ahead is crucial and most of the retailers are expected to bid at a 'cut-off', which is a safer way to opt for it. They also expect that the IPO would be oversubscribed at least two times.