TCS issue draws the big funds

Scottish Widows Fund, GoS, Deutche State Street Bank amongst the big funds.

Some of the big global funds have made a beeline for the initial public offering (IPO) of Tata Consultancy Services (TCS), which closes tomorrow. The foreign funds include Fidelity, Scottish Widows Fund, Government of Singapore, Deutche State Street Bank, GMO Emerging Markets, Abu Dhabi Investment Fund, HSBC and Templeton.

Sources in the know of the development confirmed the names and said the TCS issue, the second-largest technology issue from Asia, after Chinese chipmaker Semiconductor Manufacturing International Corp's offer, received applications worth Rs 22,000 crore. They said the issue, till the evening of the penultimate

TCS issue was subscribed 4.2 times. The total number of applications was more than 500,000. Of this, the portion reserved for qualified institutional bidders was subscribed 6.6 times.

The average subscription price of the issue is estimated at Rs 875 a share. The fully book built issue of 55.4 million shares is priced in the range of Rs 775-900 per share. It had been fully subscribed within three hours of its opening on July 29. The shares are expected to be listed on the bourses in the end of August.

Industry sources said TCS was expected to be among the top three companies by market capitalisation, post-listing. In fact, if the stock managed to get listed at Rs 900, TCS would be the third-largest company in terms of market capitalisation, after Oil and Natural Gas Corporation and Reliance.