The Hindu Business Line : TCS public offer by June-end?

THE much-awaited initial public offer of Tata Consultancy Services is expected to hit the markets towards the end of June. Corporate finance personnel of the company and the book running lead managers are readying the red herring draft prospectus and it is expected to be filed anytime now, said sources close to the issue.

The size of the issue has been pegged between Rs 4,500 crore and Rs 5,000 crore, making this the largest private sector IPO. This would account for about 10 per cent of the equity of the company, according to merchant banking sources.

"The associates to the deal have been informally told about the deal. The formal documents are expected in a couple of days' time," said a source.

The lead managers to the issue are DSP Merrill Lynch, J.P. Morgan, JM Morgan Stanley and Kotak Mahindra Capital Company. The registrar to the issue is Karvy Investor Services Ltd.

"The IPO did not get off the ground earlier as Tata Sons had issues with the valuation of the business. These have been sorted out now and the timing seems right with regard to the conditions prevailing in the stock markets currently, as well," stated a source from within the company.

There have been speculations that the face value of the shares would be very small (Rs 1 or Rs 2) in order to broad base the issue as much as possible. Company officials, however, declined to confirm the same.

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TCS public offer by June-end?