July 21, 2004

TCS' IPO opens on 29 July

•    TCS to issue 55,452,600 equity shares of Rs1 each for cash at a premium through a 100 per cent book building process.
•    The indicative price band has been fixed at Rs775 and Rs900 per equity share of Rs1 each.
•    The books will open to accept offers/bids on 29 July 2004 and close on 5 August 2004.
•    The shares are to be listed on the National Stock Exchange and The Stock Exchange, Mumbai.
•    The Book Running Lead Managers for the issue are JM Morgan Stanley Pvt Ltd., DSP Merrill Lynch Ltd. and JP Morgan India Pvt. Ltd.

Mumbai: Tata Consultancy Services Limited (TCS) is to open bids/offer for its 55,452,600 equity shares IPO on July 29, 2004.

The entire issue is being made through a book building process. The price band for the issue has been fixed at Rs775 and Rs900 per equity share of Re1 each. The issue at these indicative prices would aggregate between Rs4297.57 crore and Rs4990.73 crore.

Of the 55,452,600 equity shares of Re1 each on offer, the company is making a fresh issue of 22,775,000 shares and the remaining 33,677,600 shares are an offer for sale by Tata Sons Ltd and other shareholders of the company. There will also be a Green Shoe option of 8,317,880 equity shares of Re1 each to be offered by Tata Sons aggregating between Rs644.6 crore and Rs748.6 crore.

Of the total offer, the company has reserved 5,545,260 equity shares for allotment to employees and directors of the company. Net offer to the public would be 49,907,340 shares, which amounts to 10.43 per cent of the post offer capital. If the Green Shoe option to issue an additional 15 per cent of the offer were accepted, the company would be making a total offer of 63,770,480 equity shares amounting to 13.33 per cent of the post equity capital of Rs47.83 crore.

Tata Sons Limited, the holding and investment company of the 135-year old Tata group, including other Tata Group companies would continue to hold 86.91 per cent of the post issue capital in the company if Green Shoe is not exercised.

About TCS
TCS is part of the Tata Group, which has a heritage of over 135 years as one of India's leading corporate groups. The Tata Group has interests in a diverse range of industries, and had combined sales of approximately Rs542 billion (US$ 11.8 billion) in fiscal 2003.

TCS is a leading global IT services provider and was the first billion-dollar Indian IT services organisation by annual revenues. Since its inception in 1968, TCS has pioneered many of the significant developments in the Indian IT services industry, including the offshore delivery model for IT services.

TCS is a global organisation with offices in 32 countries and development centres in 10 countries. TCS offers a comprehensive range of IT services to its clients in diverse industries such as banking and financial services, insurance, manufacturing, telecommunications, retail and transportation. TCS' clients include some of the world's largest and well-known organisations including six of the top ten corporations in the Fortune 500 list of largest corporations in the United States. TCS has developed extensive experience in providing end-to-end IT services, integrating multiple technologies and delivering solutions in multiple geographies for its global clients. It is the largest Indian IT services organisation in terms of revenues as well as profits.

The IPO, besides giving TCS a separate corporate identity, would also help list its shares on the National Stock Exchange and the Mumbai Stock Exchange.

TCS services over 548 active clients, including six of the ten largest corporations and 39 of the 100 largest corporations in the Fortune 500 list of American corporations. To service this large client base, the company has on its rolls more than 30,000 consultants from over 30 different countries.

In FY 2004, TCS reported revenues of Rs7122.73 crore and a profit after tax of Rs1612.45 crore. The company's revenues have recorded a magnificent compound annual growth rate of 27 percent plus over the last four years.

The growth rates have been maintained during the first quarter of the current fiscal year as well. For the first quarter of FY 2004-05 ending June 30, 2004, the company reported revenues of Rs2,134 crore, up 40 per cent over previous year's first quarter figures of Rs1,526 crore. Net profit, before minority interest, too moved up by 71 per cent to Rs519 crore compared to last year's first quarter net profit of Rs303 crore.

Besides the size of its operations and its status of being a pioneer of IT services in the country, the other competitive strengths of TCS are a track record of executing large, end-to-end mission critical projects, long-term client relations, extensive global footprint, world class quality, strategic focus on Indian markets and a strong management team.

TCS has worked on mission critical projects, which are the IT backbone for the Indian financial services industry, including National Stock Exchange, NSDL, Reserve Bank of India's Public Debt Office, State Bank of India and Unit Trust of India.

The success of TCS can be attributed to its strong management team and excellent training methods developed to make the Indian professional globally relevant and competitive. TCS, with attrition rate on Indian payrolls of 6.5 per cent for FY 2004 has been ranked second among the best IT employers in India by Dataquest in 2003. Its chief executive officer, S Ramadorai, was recognised as one of the "Top 25 Most Influential Consultants in the World" by the Consulting Magazine and "Asian Business Leader of the Year" (2002) by CNBC Asia Pacific.

Says Ramadorai, "We intend to maintain and enhance our position as a leading global IT services organisation by offering a comprehensive portfolio of IT services and investing further in our competitive strengths."

While expanding its global capabilities, TCS intends to maintain its focus on the Indian market. The company believes that India is a strategically important growth market offering opportunities to build competencies in terms of developing domain expertise, leverage its assets, and most importantly develop its employees to be deployed on complex projects globally.

TCS is strengthening the Business Process Outsourcing capabilities through a series of acquisitions, WTI Technologies, Airline Finance Services and Phoenix Global among them, which would provide them with a strong platform to further expand the BPO business.

For more information, visit our website www.tcs.com

For further details, contact:
Rajesh Chaurvedi
Adfactors PR

Atul Narain Takle
TCS Limited
91-98201 35906

or mail to tcsipo@tata.com