IPO news: HCL Technologies to price shares between Rs 450-540
hcltech.com
Our Mumbai Bureau -ET
10 NOVEMBER
HCL TECHNOLOGIES LTD has indicated a price band of between Rs 450 and Rs 540 per share for its domestic initial public offer (IPO). At the indicated price levels, the total issue size could vary between Rs 639 crore and Rs 767 crore.
HCL would be offering 1.42 crore equity shares in its offering and the fixed price will be announced on November 25.
Said Vineet Nayyar, vice-chairman, HCL Technologies, "This a purely indicative price band, and the final price may be lower or higher than the limits we have indicated." The company is offering fresh equity shares, and the shares on offer represent 10.2 per cent of the post-issue paid-up equity. The current equity capital is placed at Rs 33 crore.
HCL Technologies is following the book-building route, and 90 per cent of the shares on offer will be sold through this process. The balance 10 per cent is reserved for the public and will be offered at a fixed price. The issue will open for subscription between November 16 and 24.
Shiv Nadar, chairman of HCL Technologies, is the majority shareholder with a stake of 82 per cent with the balance being held by other individuals and employees under an employee stock option plan. Post-issue, Mr Nadar's stake is expected to drop to 73.7 per cent.
As of June 30, 99 HCL Technologies recorded a turnover of just over Rs 1,000 crore ($227 mil) which includes revenues worth Rs 350 crore from its associate companies such as HCL Comnet and HCL-Perot Systems. The company has reported a net profit of Rs 101 crore. It will be deploying proceeds from the issue for its ongoing capital expenditure programme as well as to fund mergers and acquisitions.
Said Mr Nayyar, "We need around Rs 100 crore for our capital expenditure and the balance will be meant for mergers and acquisitions."
Though he didn't reveal any names, Mr Nayyar said that HCL Technologies would be looking at companies with a minimum revenue of $50m for acquisitions. Said Mr Nayyar, "More importantly, the company should provide us an access to markets, should be compatible with us, and should have a decent size."
Co-managed by Kotak Mahindra Capital Company and ICICI Securities, the book-building process will be conducted at the Bombay Stock Exchange and National Stock Exchange.
HCL Technologies primarily operates in the areas of embedded software products, networking services, applications engineering and professional services. Headquartered in the US, HCL Technologies has wholly-owned subsidiaries in the US, India and Europe. It also has other partnerships such as HCL Perot Systems and HCL Comnet. |
