MindTree likely to raise $80 mn via IPO by next fiscal end

MindTree Consulting is likely to raise close to $80 million through a public offer by the end of the next fiscal.

The IPO may hit the markets by December and the company is expected to have a topline runrate of $150 million by then.

MindTree is expected to close the current fiscal at around $100 million revenue, almost doubling its last year's topline.

A spokesperson for the company confirmed the timing of the IPO but said the quantum of funds to be raised was yet to be finalised.

MindTree had raised nearly $24 million in two rounds of funding and is estimated have close to $8 million in cash as it is generating a positive cash flow in its operations. External investors hold close to 40 per cent in the firm, while the remaining is controlled by the management and employees.

MindTree reported a marginal net profit during last fiscal and this is expected to accelerate in the current fiscal. The company wants to be among the top 10 per cent in its business in terms of profit after tax and return on investment.

The company currently employs around 3,200 professionals and this is expected to go up to 5,000 by the time the company goes in for listing. MindTree is also expected to be in line with its topline target of $231 million by 2007-08, given its current growth rate.

The company operates in the global IT services and R&D services space and serves a galaxy of high-profile customers like Cisco, Franklin Templeton, HP, Johnson & Johnson, Sony, Texas Instruments, Hindustan Lever and Volvo. It has also begun offering high-end technical support and testing services.

MindTree Consulting has embarked on an ambitious $100 million (Rs 450 crore) expansion plan in Hyderabad over the next five years and a Rs 200 crore expansion in Bangalore.

The company has in the past acquired two companies to beef up its SAP and AS/400 practices.