Reliance puts Rs 1,500 cr in TCS float

Shares may be credited to applicants by tomorrow.

The Reliance group has emerged as the largest single investor in the recent initial public offering (IPO) of Tata Consultancy Services (TCS).

The group has put in nearly Rs 1,500 crore. Cyrus Poonawala, the Pune-based vaccine maker and horse breeder has put in Rs 121 crore for the issue, which is expected to be listed with the bourses on Wednesday, August 25.

Sources in the know of developments said the Reliance group had invested in the IPO through a handful of companies. When contacted, a Reliance group spokesperson offered no comments.

Poonawalla, the low cost vaccines maker, who is also known for his horse farms, has emerged as the largest single investor in the high networth category. Poonawalla is known for his exquisite collection of thoroughbred horses, expensive watches and expansive homes.

Sources said the investors, however, will not be able to get the full allotment of the number of shares applied for. "In all probability, the Reliance group will receive shares amounting to nearly 5 per cent of the shares applied for," they added.

Some of the big global funds, including Fidelity, Scottish Widows Fund, Goverment of Singapore, Duetche State Street Bank, GMO Emerging Markets, Abu Dhabi Investment Fund, HSBC and Templeton, have also applied in the IPO.

Our Markets Bureau adds: The TCS shares are expected to be credited into applicant's accounts latest by August 21 and the shares will start trading on the bourses on August 25. The total number of allottees is 11.30 lakh.

According to merchant banking sources, retail investors who had bid for 56 shares will get 20 shares, while those who had bid for 49 shares will get 17 shares, and applicants with bids for 42 shares will get 15 shares.

Similarly, those who had bid for 35 shares will get 12 shares, and those who have bid for 21 shares will get allotment of 7 shares. Individual investors who have put bids for 14 and 7 shares will get allotment on a proportionate basis, sources added.

The retail portion of the 100 per cent book built issue of 55.45 million shares of Re 1 each was subscribed 2.85 times, while the high net worth investors (HNI) portion was subscribed 19.15 times. The total offer was subscribed 10.32 times

TCS priced the IPO at Rs 850 a share, near the top end of the previously set Rs 775-900 price band.