Tech Mahindra files IPO papers

Tech Mahindra today filed its draft red herring prospectus with market regulator Sebi for an initial public offering (IPO).

Tech Mahindra, a joint venture of the Mahindra group and British Telecom, will tap the capital market with an offer of 12.74 million
shares, mainly for expanding its infrastructure including setting up a campus in Pune with an investment of Rs 350 crore in 18 months.

While the 51.12% holding of the Mahindra group would come down to 45.01% post-IPO, the holding of British Telecom would drop to around 33.95% from 35.56%.

Mahindra and BT would divest 3.82 million and 5.73 million shares, respectively, in the IPO, and the company would issue 3.81 million fresh shares in the IPO.

"We have brought down revenue dependence on BT from 80% over the last two years. However, in revenue terms, this figure is increasing. We expect other clients' contribution to go up," Vineet Nayyar, MD and CEO of Tech Mahindra, said.