Fresh equity to account for 41% of public issue

TCS PUBLIC OFFER/ Staff to get 10 per cent of the net offer

Tata Consultancy Services (TCS) has proposed to offer 55,462,600 equity shares through its initial public offering. While, around 41 per cent of the offer will be through a fresh issue of equity shares of Rs 1 each, the balance will be through an offer for sale.

TCS's draft red herring prospectus states that the present offer comprises of a fresh issue of 22,775,000 equity shares, with 32,677,600 equity shares offered through sale.

Around 60 per cent of the net offer, amounting to 29,944,410 equity shares, will be allocated on a discretionary basis to qualified institutional buyers (QIBs), while a minimum of 25 per cent, around 12,476,840 equity shares will be allotted to retail individual bidders on a proportionate basis.

At least 15 per cent of the offer, amounting to 7,486,090 equity shares, will be allocated on a proportional basis to non-institutional bidders.

The draft red herring prospectus has not indicated the minimum lot size for allocation of the shares. Since the offer price is expected to be in the region of Rs 875-950 per share, the minimum lot size is likely to be less than 100 shares.

It may be noted that the recently concluded public issue by the Oil & Natural Gas Company, priced at Rs 750 per share, was allocated through a minimum lot size of 10.

Meanwhile, allocation to the employees of the company will be up to 10 per cent of the net offer, which will result into an offer for 5,545,260 equity shares.