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News >> Technology >>
Sasken IPO opens with a bang
By agencies
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Friday, 12 August 2005, 19:30 IST
BANGALORE: The Initial Public Offer of Sasken Communication Technologies Limited (Sasken) received an overwhelming response on day one itself with the issue overscribed by eight times within few hours of opening today.
The company entered the capital market today with an issue of five million equity shares of Rs 10 each for cash to be decided through a book-building price with the price band fixed between Rs 230 and Rs 260 per share. According to senior officials of the company, the initial response was overwhelming.
A pioneer in telecom R&D outsourcing and the first Indian company to have more than seven patents filed in the U.S. and 27 more in the pipeline, Sasken had major investors in multinationals Intel, Nortel networks and Nokia.
The company had reserved 60 percent of the 4.5 million shares available for public to qualified institutional buyers on a discretionary basis and another ten for non-institutional investors. The balance 30 percent is reserved for the retail investors.
The net offer to public constituted 16.36 percent of the fully diluted post issue paid up equity capital.
Switching over to royalty cum license mode payment of its products instead of licensing fee as earlier, Sasken has a hybrid business model, which involved a mix of software products and services, which were complementary to each other.
Out of the total revenue its services and products business contributed 74.51 percent and 25.49 respectively in 2003-04 and 85.97 percent and 14.03 percent of consolidated revenue for the last fiscal.
Speaking to newsmen here, company Chairman and CEO Rajiv Mody said the company aimed to utilize the capital raised to set up a campus for software development in Bangalore at a cost of Rs 1.26 billion and to meet general corporate expenditure including strategic investments, acquisitions and joint ventures.