Tech Mahindra to enter capital market with 12.74 mn shares

New Delhi, June 21: Tech Mahindra, one of the leading IT solutions providers to companies worldwide, today announced the filing of its draft red herring prospectus, for a proposed issue of 12.74 million shares, with market regulator SEBI.

Of the total proposed issue 1.15 million shares will be reserved for employees.

Mahindra&Mahindra and BT will offer 3.82 million and 5.73 million shares as part of the issue. The company will issue additional equity of 3.18 million shares as part of the issue.

The company plans to use the proceeds from the issue for creating facilities for expansion. The company has acquired 98,400 square metres of land and proposes to build world class facilities in the Rajiv Gandhi Infotech Park in Hinjewadi, Pune.

Commenting on the occasion, Tech Mahindra Chairman Anand Mahindra said, ''Tech Mahindra has emerged as one of the leading players in the Telecom Software space, due to a combination of technological capability, a committed workforce and strategic partnerships with industry leaders. It has now set its sight on the new markets and customers and the listing is a strategic step in this direction.'' The company has registered a 31 per cent revenue growth as compared to its performance the year before. The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore, from Rs 945.6 crore the previous year. Profit grew by 130 per cent, from Rs 102.4 crore for the year ended March 31, 2005 to Rs 235.4 crore for the year ended March 31, 2006.

UNI