The big bang events

Yes, we did have our share of some of the biggest market related deals in year 2002. A rundown of some of the big bang happenings.

Initial public offering: The year began with the biggest IPO with Bharti Televentures' Rs 834 crore (Rs 8.34 billion) domestic offering in February 2002.

With DSP Merrill Lynch as the lead bookrunner, it became the first 100 per cent book built issue to hit the market, and the biggest equity offering in five years.

Priced at Rs 45 a share, it was oversubscribed 2.56 times. Fifty one per cent of the issue was subscribed by institutional investors with retail investors picking up the rest. They are all stuck with the stock, as its price plunged post-listing and has never recovered since.

Cashless acquisition: June saw the largest ever cashless acquisition -- Hughes Tele.com by Tata Teleservices Ltd.

The latter bought a controlling stake (50.83 per cent) in Hughes for Rs 1.6 billion including an open offer for an additional 20 per cent.

It was the first acquisition of a basic services telecom entity and the first acquisition of a listed telecom firm by an unlisted entity for a non-cash consideration.

Selling shareholders were given preference shares of Tata Teleservices, to be redeemed by TTL over a 4-6 year period.

Private equity in IT: In September 2002, General Atlantic Partner invested $100 m in Patni Computers. It was the largest private equity investment in the IT services in the country.

Though initiated in the second half of 2001, it was completed only this year. Patni now has the financial muscle for organic and inorganic growth and re-organisation of its corporate structure.

Mortgage-backed deal: The year also saw the largest mortgage-backed deal -- with HDFC issuing a Rs 156 crore (Rs 1.56 billion) MBS in June.

It was also the first such issue to have a premium structure enabling HDFC to cap certain risks and increase profitability.

The issue also set a pricing benchmark at 35 basis points over papers with the same tenor and similar rating.

Divestment: The government divested its 26 per cent stake in IPCL at Rs 231 per share for a total amount of Rs 1,491 crore (Rs 14.91 billion), making it the biggest divestment exercise this year.

The second biggest deal was offloading its 25 per cent stake in Videsh Sanchar Nigam at Rs 202 per share for a total consideration of Rs 1439.25 crore (Rs 14.392 billion).

This was followed by Indian Oil Corporation acquiring a 33.58 per cent stake in IBP at a phenomenal Rs 1,551.25 per share for a total amount worth Rs 1,153.68 crore (Rs 11.536 billion) -- reserve price Rs 337 crore (Rs 3.37 billion).

2002: The Year That Was

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