Tatas get SEBI nod for TCS IPO

Market regulator SEBI has given clearance to Tatas for the proposed initial public offering of Tata Consultancy Services, that is likely to realise over Rs 5,000 crore (Rs 50 billion).

"We got all the clearances from SEBI last evening," TCS Vice President (Corporate Communication) Atul Takle told PTI from Mumbai.

Tatas had submitted on Thursday their response to a clarification sought by SEBI on the draft red herring prospectus, Takle said.

On whether the company would file on Monday papers before the Registrar of Companies for the IPO, which is perhaps the last requirement for TCS before announcing the launch date and price band, he said: "It has not yet been decided."

The necessary clearances from SEBI coincide with the recommendations of the merchant bankers mandated by TCS for the IPO to launch the offer on July 29, sources said.

The company was presented with two plans for opening the issue -- first beginning on July 23 and the second by the end of the month -- by the merchant bankers for the IPO, the biggest in the private corporate sector, sources associated with the process said.

They, however, said it would require about ten days to begin the IPO after all the formalities, including filing with RoC, are completed.

Incidentally, July 29 coincides with the birthday of group founder JRD Tata and the centenary celebrations of the Tatas, who have, at present, market capitalisation of over Rs 50,000 crore (Rs 500 billion).