Tech Mahindra IPO
Tech Mahindra IPO — date, price band, lot size & details 2006
Tech Mahindra listed on 28 Aug 2006 at ₹521, 42.7% above the ₹365 issue price.
Tech Mahindra is a Pune based IT services company for the telecom industry, set up as a joint venture of Mahindra and Mahindra and British Telecommunications. Its total income was Rs 1,228.45 crore in FY2006.
Stock price
Tech Mahindra is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 01 Aug 2006
- Close 04 Aug 2006
- Allotment 16 Aug 2006
- Refund/credit TBA
- Listing 28 Aug 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 1 to 4 Aug, 2006 |
|---|---|
| Price Band | ₹315 – ₹365 |
| Face Value | ₹10 |
| Lot Size | 16 Shares |
| Issue Size | ₹465.23 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 5,840 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 16 shares at the ₹365 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 16 | ₹5,840 |
| Retail (max) | 34 | 544 | ₹1,98,560 |
| S-HNI (min) | 35 | 560 | ₹2,04,400 |
| S-HNI (max) | 171 | 2,736 | ₹9,98,640 |
| B-HNI (min) | 172 | 2,752 | ₹10,04,480 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01It was ranked by NASSCOM as the eighth largest Indian IT services company by export revenue in fiscal 2005.
- 02Total income rose from Rs 725.04 crore in FY2004 to Rs 1,228.45 crore in FY2006.
- 03Profit after tax rose from Rs 71.09 crore in FY2005 to Rs 220.12 crore in FY2006.
- 04Net worth rose from Rs 435.34 crore in FY2004 to Rs 597.87 crore in FY2006.
Risks · 5
- 01BT, one of its 2 promoters, accounted for 69% of its revenue in fiscal 2006.
- 02Its focus on 1 industry, telecom, left it exposed to cuts in telecom IT spending.
- 03Most of its management and technical staff were based at 1 facility in Pune, so damage there could disrupt operations.
- 04Rs 348.92 crore of the Rs 465.23 crore issue went to the selling promoters, M&M and BT.
- 05Promoter and promoter group holding fell from 98.49% before the issue to 87.53% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Tech Mahindra offer document.
| Metric | 31 Mar 2006 | 31 Mar 2005 | 31 Mar 2004 |
|---|---|---|---|
| Assets | 1,009.30 | 676.80 | |
| Total Income | 1,228.45 | 929.59 | 725.04 |
| Profit After Tax | 220.12 | 71.09 | 94.13 |
| NET Worth | 597.87 | 482.83 | 435.34 |
| Reserves and Surplus | 577.07 | 462.48 | 415.07 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Tech Mahindra RHP.
Where the money goes
₹133.88 Cr of the issue is earmarked to named objects.
About the company
It provides IT services and solutions to the telecommunications industry, and in fiscal 2005 it was ranked by NASSCOM as the eighth largest Indian IT services company by export revenue.
Through its long relationship with BT it had a strong presence in Europe, and it was growing in North America with clients such as AT&T and in the Asia-Pacific region. Most of its management and technical staff were based at a single facility in Pune.
The IPO was Rs 465.23 crore, with Rs 116.31 crore of fresh issue and Rs 348.92 crore of offer for sale by M&M and BT, at Rs 365, the top of the Rs 315 to Rs 365 band. The fresh money was for its delivery infrastructure.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Tech Mahindra IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
ABN-AMRO Securities (India) Pvt. Ltd
2 issues handled2 of their issues have listed so far, and 1 opened above the issue price (average +3.8%). That is too small a sample to read as a hit rate.
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Tech Mahindra?
The current Grey Market Premium is ₹0.
What is the Tech Mahindra IPO price band?
₹315 to ₹365, on a face value of ₹10.
When is the allotment?
The basis of allotment is 16 August 2006, with listing on 28 August 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
