Firstsource IPO in Rs 54-64 band: <b>Video</b>

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Firstsource Solutions today announced it is entering the capital market with its initial public offering of 69.30 million equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process. The price band for the issue has been fixed between Rs 54 and Rs 64 per share. The issue opens on January 29, 2007 and closes for subscription on February 2, 2007.

The Issue of 69,300,000 equity shares comprises a fresh issue of 60,000,000 equity shares by the company and an offer for sale of 9,300,000 equity shares by the ICICI Group, including a reservation for certain eligible employees of upto 1,200,000 equity shares of Rs 10 each. The issue will constitute 16.65% of the fully diluted post-issue equity share capital of the company.

At least, 40,860,000 equity shares (60% of the net issue to the public) shall be allotted on a proportionate basis to Qualified Institutional Buyers (QIBs). Further, 6,810,000 equity shares (10% of the net Issue to the public) shall be available for allocation on a proportionate basis to non-institutional bidders and 20,430,000 equity shares (30% of the net issue to the public) shall be available for allocation on a proportionate basis to retail bidders, subject to valid bids being received at or above the issue price.

The company intends to use the net proceeds of the Issue to make acquisitions, set up new facilities, repay a loan and for general corporate purposes. Firstsource will be listing its shares on both the National Stock Exchange (NSE) & the Bombay Stock Exchange (BSE).