TCS shares well received by bourses
By Mumbai: | 26 Aug 2004
Mumbai: The shares of Tata Consultancy Services (TCS) was well received by the two premier stock exchanges yesterday, closing around 16 per cent higher than the issue price of Rs 850 per share. The TCS share closed at Rs 987.95 on the NSE and at Rs 987.50 on the BSE. At start of trade, the scrip quoted at Rs 1,198.7 on the NSE and at Rs 1,050 on the BSE.
"We underestimated the enthusiasm of investors; we hope this issue will give them great happiness in terms of growth," TCS chairman, Ratan Tata, said at the scrip's debut ceremony at the NSE here. The listing puts TCS among the top three in terms of market capitalisation in the country, said Hemendra Kothari, chairman, DSP Merrill Lynch. The total subscription amount was in the region of Rs 40,000 crore; of this, Rs 20,000 crore was from the retail segment alone, he said.
"TCS is the second-most valuable company in IT services in market capitalisation and the biggest company of the Tata group in market cap. The IPO has enthused retail investors so much that 12.5 lakh applications were received in the retail sector," Mihir Joshi, MD, Morgan Stanley said, at the listing ceremony at the BSE.
The scrip has been "directly listed in A group" and from Wednesday itself derivatives, both future and options, will be introduced, announced Manoj Vaish, executive director and CEO, BSE.
The listing of the company will enhance TCS's profile globally and act as a currency for its growth plans and for meeting employee expectations, said S. Ramadorai, managing director. "The company's 30,000 employees can now be rewarded in the form of stock options." He said the overseas listing would happen "at a later stage." There was over subscription to the issue from retail investors to the extent of 2.91 times, from qualified institutional buyers at seven times, and from non-institutional investors at 19 times. The subscription level from employees of the company was 77 per cent.
Overall, the offer of 55.4 million shares was subscribed 7.7 times, allowing the exercising of the greenshoe option of 8.31 million shares. The offer and greenshoe option amount to Rs 5,420 crore.
