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News >> Technology >>
$100M in IPO for Tech Mahindra
By agencies
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Monday, 07 August 2006, 19:30 IST
MUMBAI: In an initial public offering priced at the max of its proposed range, Tech Mahindra Ltd. has raised $100 million, informed joint bookrunner ABN AMRO Rothschild. This offering was offered amid strong demand they said.
Tech Mahindra, a venture between Mahindra & Mahindra Ltd. and Britains BT Group Plc., sold 12.746 million shares priced at $8.29 each share as against the proposed range of $7.15 to $8.29.
40 percent of the deal entered the Indian retail market as per market rules. This was oversubscribed 78 times and priced on Saturday, said ABNs Mike Netterfield, head of Asia technology banking. This is an IT company that is pure play in the telecom sector, he said. He stated that the company is growing at a very fast rate noting that the institutional portion was 104 times oversubscribed and valued the company at about $955 million.
The company posted a net profit of 215 percent in the quarter to June 2006. This deal comes during a deceleration in the Indian stock and convertible bond issuance with the sharp market decline in June that had shelved several deals. The company issued 3.2 million shares in Equity in the IPO. M&M and BT are selling nearly 9.6 million shares as a part of this deal.