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Bangalore , Aug 11

SASKEN Communication Technologies Ltd's initial public offer, which opened on Thursday, was oversubscribed 12.27 times on the very first day. The public issue of five million shares at a face value of Rs 10 each for cash made through the book-building route will close on August 17.

Sasken officials said the initial response to the issue was overwhelming. The company has fixed a price band of between Rs 230 and Rs 260 per share. The company expects to raise between Rs 115 crore and Rs 130 crore from the public issue, which would be 100 per cent book built. Sasken has major investors, including Intel, Nortel Networks and Nokia Growth Partners.

The company has reserved half a million shares for its employees and the net offer to public would constitute 16.39 per cent of the fully diluted post-issue paid-up equity capital. From the public portion, at least 60 per cent has been reserved for allotment to qualified institutional buyers on a discretionary basis, another 10 per cent has been reserved for non-institutional investors and the balance 30 per cent is reserved for retail investors. Enam Financial Consultants Pvt Ltd is the sole book running lead manager to the issue.

The Sasken Chairman and CEO, Mr Rajiv Mody, said the company plans to utilise the proceeds of the public issue towards setting up a software development campus in Bangalore at a cost of Rs 126.08 crore and to meet the general corporate expenditure, including investments and acquisitions.

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