The Hindu Business Line : Tech Mahindra, GMR Infra IPOs oversubscribed

Tech Mahindra's IPO was oversubscribed by 70.15 times, with bids being received across the price band of Rs 315 - Rs 365 per share. The IPO of GMR Infrastructure Ltd was oversubscribed by 6.52 times.

Mumbai , Aug. 4

Tech Mahindra Ltd and GMR Infrastructure Ltd's initial public offerings were oversubscribed at the close of their issue periods.

Tech Mahindra's IPO was oversubscribed by 70.15 times, with bids being received across the price band of Rs 315 - Rs 365 per share.

The IPO of GMR Infrastructure Ltd was oversubscribed by 6.52 times. Bids were received at the lower end of the price band of Rs 210 - Rs 250.

However, the retail category for both the IPOs was heavily undersubscribed. The retail portion of Tech Mahindra has been subscribed only 0.39 times while for GMR Infrastructure, it has been subscribed 0.06 times.

The QIB portion for both the IPOs has been oversubscribed.

Market sources say that given the strong fundamentals and boom in the IT industry, Tech Mahindra shares should open at a premium, at least Rs 75 above the issue price.

"Investment in GMR Infrastructure will be relatively long term and hence there has not been a very good involvement from the retail segment," said a dealer from a top broking firm. He added that the shares of the company should open in the price band range, at the lower end.

Tech Mahindra will offer around 1.27 crore shares and GMR Infrastructure 3.81 crore shares to the public.