Abstract:
Mindtree IPO was scheduled to come out on 9th February, 2008 and the offer was planned to close on 14th February, 2008. Mindtree Consulting Services Limited decided on this IPO deal in order to raise capital, which could be used in repaying loans and developing new centers.
Mindtree IPO refers to the Initial Public Offering of Mindtree Consulting Services Limited. This Information Technology Services and Research and Development Services Company of India declared its' decision of Initial Public Offering in the first week of February, 2008. This
Mindtree IPO was scheduled to open on 9th February,2008 and close on 14th February.
Reason Behind Initial Public Offering
With this IPO deal, Mindtree was actually planning to raise capital worth 237.5 crore rupees approximately. Mindtree would use this raised capital in funding a new development center which would be established in Chennai.
But, the development of this new center was not the only reason behind this Initial Public Offering Decision of Mindtree. In fact, Mindtree was carrying a heavy burden of loan repayment.
The Chairman and Managing Director of Mindtree Consulting Services Limited, revealed that the company would use 18.77 crore rupees for repaying the loan, that the company took from HSBC(Hong Kong and Shanghai Banking Corporation). Another 120.7 crore rupees from the raised capital would be used for purchasing land in Chennai, for the new development center.
Details of the IPO Deal
The company has also declared the price range of its' shares for the Initial Public Offering. The company fixed the price band of its shares in the range of Rs 365 to Rs 425 rupees per share.
Mindtree has decided to offer 55.9 lakh equity shares through this Initial Public Offering. Out of this 55.9 lakh equity shares, almost 3.72 lakh shares have been reserved by the company for its' own employees. The company has reserved 49.4 lakh equity shares to offer in Net Public Issue.