Patni may price IPO at Rs 220-250

Patni Computer Systems, the sixth largest IT company in India, is likely to price its forthcoming initial public offer (IPO) in the band of Rs 220 and Rs 250 for a Rs 2 paid-up share.

The IPO is expected to hit the market by the end of this month or in early February. The company plans to raise close to Rs 450 crore through its initial public offering, according to merchant banking circles.

The offer comprises a fresh issue of 1.34 crore equity shares of Rs 2 each and an offer for sale of 53 lakh shares of Rs 2 each totalling 1.87 crore equity shares.

Merchant banking circles confirmed the pricing part, and also say that the time is ripe for the IPO to hit the market.

Patni will list the shares through a 100 per cent book-building offer on the BSE and the NSE. The offer will constitute 15 per cent of the fully diluted post-issue paid-up capital of the company.

Post offer, the equity capital of the company will be Rs 24.96 crore and the promoters' holding will come down from 60.8 per cent to 51.3 per cent.

The holding of other shareholders including General Atlantic Mauritius, GE Capital Mauritius Equity Investment and GC APC Technology Investment Mauritius together will come down from 39.2 per cent to 33.7 per cent.

DSP Merrill Lynch and Kotak Mahindra Capital Company are the book-running lead managers and Citigroup Global Markets India will act the co-book running lead managers.

Patni recorded revenues of $188.3 million in 2002 based on the consolidated financial statements prepared in accordance with the US GAAP.

Patni, a leading provider of integrated IT services, is known for its experience in insurance, financial services and manufacturing industries.