Financial Daily from THE HINDU group of publications
Tuesday, Feb 28, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 28, 2006 |
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Markets
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IPOs Money & Banking - NBFCs Mahindra Financial fixes IPO price at Rs 200 Our Bureau
Mumbai , Feb. 27 Following a successful IPO, subscribed nearly 27 times more, Mahindra & Mahindra Financial Services Ltd (MMFSL) today priced its shares at Rs 200 each. The original price band for the issue of two crore shares of Rs 10 each, for cash at a premium decided through the book-built process, had been fixed at Rs 170-200 a share. The offer was composed of fresh issue of one crore shares and the rest being sale by existing shareholders, mainly Mahindra & Mahindra Ltd (M&M). M&M has now earned close to Rs 200 crore by diluting its equity holding in MMFSL from 89.8 per cent to 67 per cent. "We are very pleased with the strong investor response; the issue was over-subscribed almost 27 times. There were 2.9 lakh applications and the total demand for the Rs 400-crore issue was around Rs 10,000 crore," said Mr Bharat Doshi, Executive Director, M&M. Receipts from the equity dilution would add to M&M's Rs 800-crore treasury. The company recently obtained board approval for a $200-million FCCB issue, which it would make after getting required shareholder permission.
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