TCS's Ramadorai: Sitting smug

So the initial public offering (IPO) of Tata Consultancy Services (TCS) did after all get the kind of response a software services pioneer deserves. After all, compared to the offer size of Rs 5,420 crore (at the issue price), the total demand generated was for over Rs 40,000 crore. The over-subscription figure, on an overall basis, is a noteworthy 7.7 times. One redeeming factor about the TCS IPO is that unlike many other previous offerings, the bids were spread evenly. This is because, rather than blindly bidding at the highest price (Rs 900 in TCS' case), investors did attempt to value the company, and price it accordingly. "Book-building in its real sense happened here and that shows the maturing of the Indian IPO market," says Nimish Shah, Director, Parag Parikh Financial Advisory Services.

The TCS top brass for its part also did its bit to bring alive the spirit of book-building. Though the issue was oversubscribed by 2.2 times at the highest price band, the company has decided to price it only at Rs 850, leaving more room for appreciation for investors. "We priced it lower to make it more attractive to the long-term investors," explains Ratan Tata, Chairman of TCS. That won't stop some of them from dumping the stock on listing day.

-Narendra Nathan

Indica's New Platform
Expect it by 2007. Don't expect it to look anything like today's Indica.

Tata Indica: Making way for the new

Some time in 2007, there'll be a new Indica on the road. at the Engineering Research Centre in Tata Motors' sprawling 1,200 truck and car plant, a group of engineers has already begun work on a new platform that will eventually become the second generation Indica. According to one senior executive, the brief given to the engineers is that the new car "doesn't necessarily have to be like the Indica", and it could well be a totally different looking vehicles that's ultimately manufactured at K block, Tata Motors' car making facilities. "The Indica (launched in December 1998) is now close to five years old. Like most cars, it will have a life of eight years. But by 2007, we will need a new car," says J.M. Thatte, Vice President (Car Plant-Pune), Passenger Car Division, who retired last fortnight.

Thatte, however, will still be involved with Tata Motors and the Indica as a consultant. "Our learnings with the Indica have to be transferred. The new car doesn't need to go through the same teething problems like the first one."

Meantime, the capacity of the Indica is being aggressively ramped up by 50 per cent to 750 cars a day. Some 150 of these will be the Marina station wagon. Between now and 2007, Tata Motors executives expect to launch at least two more variants of the Indica, perhaps the first one just before April 1, 2005, when the Euro III norms come into play. Another car with a Euro IV compliant engine (both petrol and diesel) will be ready by 2006.

-Brian Carvalho

Act And Amend
The proposed amendment to the Companies Act, 1956, is a step in the right direction.

Surely it makes eminent business sense to reduce the number of sections in an Act, from 781 to 289 as in this case. As does bringing down compliance costs, reducing the workload on the registrar of companies, imposing stringent norms at the time of incorporation to deter companies from doing the vanishing act, having a special audit to prevent insider trading, allowing foreign companies to register outside Delhi, and doing away with redundant provisions. The Act in question: The Companies Act, 1956.

The Concept Paper on Amendment to the Companies Act, 1956, to be sure, seeks to achieve much, much more. Moreover, it has also proposed amendments on the issue of securities, capital and public deposits, dividends, investor education and also simpler ways of winding up loss-making companies. However, a few irritants tend to blemish the rosy picture. The draft proposals' insistence on having 50 per cent independent directors on every company's board, for instance. "It can create supply side problems, given the huge number of companies and the rather limited number of independent directors,'' says an expert.

On the flip side, though, there are irritants: Like a proposal to impose a cess of anywhere between 0.005 per cent and 0.1 per cent in the annual turnover of every company for rehabilitation of sick companies. Thank heavens it's only a concept paper!

-Ashish Gupta

WORKOUT
In-House Gym

Company gym: A social exercise

Financial muscle may soon mean more than just strapping numbers on the balance sheet, if the world's largest gym chain, Gold's Gym has its way. Having already set up a "corporate" gym for Reliance Infocomm, representatives of the chain are now actively scouting for more clients. Globally the chain has set up gyms for cp, Dell and Microsoft, amongst others. In India, G. Ramachandran, Director, Gold's Gym, sees great potential in Bangalore, Chennai and Hyderabad. ''In Mumbai, the biggest constraint is space. For Delhi-ITEs being seen is extremely important; that's why they wouldn't want to use a company gym.'' And all this time you thought gymming was about working out.

-Priyanka Sangani

AIRLINE
Castle In The Sky?

UB's Mallya: Fly like a king

It's not called "fresh air" for nothing. India's first ''funliner''-when it takes off-will have air hostesses chosen from a national model hunt, designer interiors, in-flight shopping, multi-channel entertainment and a brand that exults you to ''fly the good times''. Inspired by UB Group's bestselling guzzler-which of course will be served up if Mallya gets the go-ahead-Kingfisher Airlines has inked a deal with Airbus for 12 spanking new A-320s with a list price of $750 million. ''The aircraft and service will reflect the Kingfisher lifestyle imagery,'' says UB Group Chairman Vijay Mallya. Brand ambassador Katrina Kaif will attempt to woo the young and upwardly mobile flocking. Predictably, operational details are sketchy. Fares on Kingfisher Air, while lower than regular airlines, will be at a premium to ''low-cost'' carriers.

-Abir Pal