Tech Mahindra IPO oversubscribed

Category: Markets | No Comments | Posted on August 6, 2006

Whether its through Private equity or Primary market, money is pouring into the telecom industry.

The IPO of Tech Mahindra (formerly Mahindra British Telecom), a provider of IT solutions to telecom companies, was oversubscribed 72 times when it closed on August 4.

Tech Mahindra is one of the top 10 software exports companies in India. It was ranked eighth largest in terms of export revenues as per Nasscom 2005.

It entered the IPO market with a public issue of 12,746,000 equity shares of Rs 10 each in the price band of Rs 315- 365 per equity share.

The company has registered a 31% revenue growth as compared to its revenues the year before.

The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore (Rs 12.42 billion), from Rs 945.6 crore (Rs 9.45 billion) for the year ended March 31, 2005.

Profit after tax also grew by 130%, from Rs 102.4 crore (Rs 1.02 billion) for the year ended March 31, 2005 to Rs 235.4 crore (Rs 2.35 billion) for the year ended March 31, 2006.

Source: Moneycontrol