×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

MindTree shares gain 60% on debut

MindTree shares gain 60% on debut
Comment E-mail Print Share
First Published: Wed, Mar 07 2007. 02 12 PM IST
Updated: Wed, Mar 07 2007. 02 12 PM IST
Bloomberg
BANGALORE: Shares of MindTree Consulting Ltd, which manages computer networks and software for customers including Pfizer Inc. and Sony Corp., gained as much as 60% on their first day of trading in Mumbai.
The shares, which listed at Rs599 on the Bombay Stock Exchange on 6 March, rose as high as Rs678.80 and traded at Rs635.80. Bangalore-based MindTree raised Rs238 crore in India’s second- biggest initial public offering this year, following Idea Cellular Ltd’s Rs 21.25 billion share sale last month.
MindTree, which boosted revenue on average 73% annually in the last four years, garnered bids for more than 103 times the shares it offered. Larger local rivals Tata Consultancy Services Ltd and Infosys Technologies Ltd outperformed India’s benchmark index in the past year, helping woo investors to MindTree.
“MindTree is well-poised for growth in the buoyant demand environment,” Hitesh Zaveri, an analyst at Edelweiss Research in Mumbai, said earlier, giving a “subscribe” rating to the initial share sale. “We expect the company to sustain its above- industry growth rate over the next two to three years,” he added.
Sales at MindTree may rise 31% to almost $134 million in the year ending 31March and is likely to exceed Rs10 billion by fiscal 2009, Zaveri wrote in a note to investors. The company sold 5.59 million new shares in the initial public offering at Rs425 each.
MindTree set aside 372,900 shares for employees and 279,660 shares for business associates, reducing the number offered to investors to 4.94 million shares, or about 13.3% of the company’s equity after the issue. Kotak Mahindra Capital Co., JM Morgan Stanley Private Ltd and Macquarie India Advisory Pvt. managed the sale.
MindTree drew bids for 577.7 million shares against the 5.59 million offered at Rs365 to Rs425 apiece, according to the National Stock Exchange.
Comment E-mail Print Share
First Published: Wed, Mar 07 2007. 02 12 PM IST
More Topics: Home |