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Our Bureau

It's 1.79 times for GMR Infrastructure

Mumbai , Aug. 1

The initial public offering (IPO) of Tech Mahindra, a joint venture between Mahindra and Mahindra Ltd and British Telecommunications PLC, was subscribed 1.26 times on the first day of the issue.

Similar to the IPO of GMR Infrastructure Ltd, the qualified institutional investor portion of the IPO has been subscribed 2.28 times.

The bids received totalled around 1.58 crore equity shares as against the proposed issue of 1.27-crore equity shares.

The price band of the IPO has been fixed at Rs 315 - Rs 365. The issue closes on August 4.

"The valuation of the offer is perfect giving the strong fundamentals of the company. In fact, the share prices should open at a premium of around 20 per cent," said the equity-head of a leading broking firm.

Market sources said that bids had been evenly received across the price band.

The company plans to raise Rs 465 crore from the higher end of the price band.

The issue will constitute 11 per cent of the fully diluted post-issue paid-up capital of the company. Sixty per cent of the issue is reserved for QIBs, while non-institutional investors would receive 10 per cent and 30 per cent would be allotted to retail bidders on a proportionate basis.

The company plans to use the proceeds from the issue for expansion.

Kotak Mahindra Capital Company Ltd and ABN Amro Securities (India) Pvt Ltd are the book running lead managers to the issue.

GMR Infrastructure Ltd IPO was subscribed 1.79 times on the second day of the issue.

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