Patni Issue at Rs 200-230 Per Share

Patni Computer Systems, India’s sixth largest software exporter entered the
capital markets with its initial public offering (IPO). It opted for the 100%
book building method for efficient price discovery. The price was fixed at Rs
200-230 per equity share of face value of Rs 2 each.

The company received overwhelming response to its 100% book built IPO. The
company claims that the issue was subscribed 22 times and all categories of the
issue have been well oversubscribed. Most of the bids were received at the upper
end of the price band of Rs 230 per share and majority of the retail bids came
at cut off.

The company had offered 18.7 million equity shares comprising fresh issue of
13.4 million equity shares and an offer for sale of 5.3 million equity shares.
The shares will be listed at Bombay Stock exchange and National Stock exchange,
around February 25. The offer constituted 15% of the fully diluted post issue
paid up capital of the company. The post-IPO equity capital of Patni will be Rs
249.6 million. Patni recorded total revenues of $188.3 million in 2002 and
$180.5 million for the nine month period ending September 2003.

Analysts believe that it was high time for a company like Patni to go for an
IPO as market sentiments are favorable and any good issue at the moment will
definitely get a good response.

At present General Electric, General Atlantic Partners (GAP) and Patni family
are the major shareholders in the company. GAP had invested $100m in the company
for expansion last year and GE holds just under 10% equity in Patni.

Rahul Gupta/CyberMedia News