The TCS initial public offering opens on Thrusday and if market players are to be believed, the issue will get oversubscribed on day one itself.
Many brokerages are said to have issued a buy call to their clients along with rave reviews.
The initial response from market intermediaries suggests that there is a huge demand from institutional investors for the offering.
Business Standard spoke to a cross-section of market participants and most agree that the IPO should get a huge response from institutions and high net-worth individuals, with both segments getting oversubscribed a couple of times over.
The retail segment will get fully subscribed and at best get twice the number of applications, they added.
IPO margin funding players also indicate a big response for the IPO.
Hanu Bhatia, senior vice president, Parag Parikh Financial Advisory Services, said," There seems to be a huge appetite for the float as it is one of the premier IT companies we have and has a very strong brand name."
He added that anyone who wants an exposure to technology sector in India will want TCS in its portfolio.
Nandan Chakraborty, head - research, Enam Securities, said," The TCS IPO looks set to get a good response as it has the necessary scale to attract institutional buyers. Besides, technology is now very attractive as it has become more or less a defensive sector in the current scenario, with revenues not being subject to domestic issues."
A good response will augur well for other technology scrips also, he added.
Ambareesh Baliga, vice president, Karvy Stock Broking, concurs and said a good response will lead to the technology sector getting re-rated.
The TCS issue for 55.452 million equity shares of face value Re 1 each opens on Thursday, July 29, and will close on August 5. The IPO has been priced in a band of Rs 775-Rs 900 per share. JM Morgan Stanley, DSP Merrill Lynch and JP Morgan are the book running lead managers to the issue.
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