Tech Mahindra, the software arm of auto major Mahindra
& Mahindra, has filed a draft red herring prospectus
with market regulator Sebi for an initial public offer
(IPO) of 12.74 million shares.
company, a joint venture between Mahindra & Mahindra
and BT Group plc, said the IPO will fund the expansion
of its infrastructure, which will include the setting
up of a campus in Pune involving an investment of Rs350
company is also setting up a state-of-the-art software
development centre and integrated campus in Kolkata. The
centre - Tech Mahindra Technology Centre East - will employ
about 2,000 people in the first phase. The campus, to
be built on a 12-acre plot, will also have a residential
new centre will be the Tech Mahindra''s centre of excellence
for LHS solutions and will handle system integration projects
for core telecom areas.
IPO, the Mahindra group holding in the JV would come down
to 45.01 per cent from the current 51.12 per cent while
BT holding would drop from 35.56 per cent to 33.95 per
cent, the company said.
and BT together would divest a total of 9.55 million shares
while the company would issue 3.81 million fresh shares
through the IPO.
the years, BT holding in Tech Mahindra has come down from
80 per cent to below 40 per cent currently.
Mahindra, which provides telecom solutions to companies
the world over, is among the top ten IT services companies
in the country in terms of export revenues. The company
reported a 31 per cent rise in 2005-06 revenues, at Rs
1,242.7 crore, against the previous
year''s Rs. 945.6 crore. Profit after tax (PBT) grew by
130 per cent, from Rs. 102.4 crore to Rs 235.4 crore over
the same period.