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Monday, August 07, 2006

Tech Mahindra fixes IPO price at Rs 365

Investors provided an encouraging response to IPO of Tech Mahindra, a leading Indian provider of IT solutions to telecom companies. The company's IPO oversubscribed 72.05 times.

The company has fixed its IPO price at Rs 365 per share, higher end of price band.

Tech Mahindra, ranked eighth largest in terms of export revenues as per Nasscom 2005, entered the IPO market with a public issue of 12,746,000 equity shares of Rs 10 each in the price band of Rs 315- 365 per equity share.

The issue constitutes 11% of the post issue paid up capital of the company and the net issue constitutes 10% of the post issue capital

The company proposes to use the proceeds from the fresh issue for creating facilities for expansion. The company has been granted land measuring 98,923 square metres located at Rajiv Gandhi Infotech Park in Hinjewadi, Pune for this purpose.

The company has registered a 31% revenue growth as compared to its revenues the year before. The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore (Rs 12.42 billion), from Rs 945.6 crore (Rs 9.45 billion) for the year ended March 31, 2005. Profit after tax also grew by 130%, from Rs 102.4 crore (Rs 1.02 billion) for the year ended March 31, 2005 to Rs 235.4 crore (Rs 2.35 billion) for the year ended March 31, 2006. For the June quarter, the revenues were Rs 591.1 crore (Rs 5.91 billion) and PAT was Rs 106.6 crore (Rs 1.06 billion).

The book running lead managers to the issue were Kotak Mahindra Capital Company Limited and ABN AMRO Securities (India) Private Limited. The registrar to the issue was Intime Spectrum Registry.

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