GSS America IPO subscribed fully
GSS America Infotech, IT solution provider, is the first initial public offer, which got subscribed fully in this month because last four companies have withdrawn or postponed their IPOs due to poor response. Reliance Power’s weak listing and trading way below issue price is one of the reasons, which impacted thses recent IPOs. High valuations of stocks also other reason.
Earlier Emaar MGF, Wockhardt Hospitals, Globus Spirits and SVEC Constructions have withdrawan or postponed their IPOs despite their efforts of extending the issue period and reduction in price band.
GSS America Infotech has subscribed 1 time, as per data available on NSE website.
Till yesterday, the support has seen from non institutional investors, which reserved portion subscribed nearly 3 times followed by 1.18 times subscription in qualified institutional investors category.
The issue has opened for subscription with a public issue of 34,97,495 equity shares of Rs 10 each through 100% book building process. The issue wil close today, February 15, 2008 and the price band is at Rs 400 to Rs 440 per equity share of Rs 10 each.
Religare Securities Limited and Edelweiss Capital Ltd. are the BRLMs for the Issue and Bigshare Service Pvt Ltd is the Registrar to the Issue. The equity shares are proposed to be listed on BSE and NSE.
The company proposes to utilize the net proceeds of the issue for setting up of state of the art Global Delivery Centre (GDC) at Hyderabad with 1000 seater capacity, setting up overseas offices, meeting working capital requirement and for acquisitions. Presently the company is operating in India from its two Global Delivery Centers in India, one at Jubilee Hills, Hyderabad and second at Hitech City, Madhapur, Hyderabad. Further, GSS also has two GDCs in Chicago, US.
The Company’s present operations can be classified into two areas namely Enterprises Application Integration, (EAI) Infrastructure Management and Managed Services (IM/MS).
Its clientele include major Fortune 1000 companies like Ernst & Young, Blue Cross Blue Shield of NC, BMC Software, Thomson, WR Grace & Co, TDS Telecom, Pepsi Co, etc.
