New Delhi: Information technology solutions provider Tech Mahindra said on Thursday it will enter the capital market with a public issue of 12 million equity shares of Rs 10 each, at a price band of Rs 315 to Rs 365, to fund its expansion plans.
The offer will be open from August 1 to August 4, and will be listed on both the NSE and BSE.
The issue is open through the 100 per cent book building process with an allocation of at least 60 per cent of the issue size to Qualified Institutional Buyers (QIB), 30 per cent for retail bidders and 10 per cent for non-institutional bidders.
The public issue consists of a fresh issue of 3,186,480 equity shares and an offer for sale of 9,559,520 equity shares by Mahindra and Mahindra Ltd and British Telecommunications Plc. Out of the issue, 1,158,790 equity shares are reserved for eligible employees.
''We would use the proceeds from the issue for expanding our Hinjewadi facility, Pune,'' Tech Mahindra Corporate Affairs President Sujit Bakshi said.
The 25-acre Pune facility that has a capacity to house 9,000 employees, at present has 6,000 professionals. Phase I of the expansion plan, that will be complete within the next 18 months, will house 3,000 professionals.
Besides the Pune facility, entailing a capital expenditure of Rs 350 crore, the company will also set up a 16 acre facility in Kolkata at an investment of 80 crore in the next two years, with a total capacity of 5,000 people.
The company has also acquired land at Special Economic Zones (SEZs) in Chandigarh (10 acre) and Hyderabad (15 acre).
On R&D plans of the company, Bakshi said, ‘‘at present, our R&D activities contributes 5 per cent of our revenues. We have a team of 600 people, spread across Pune, Bangalore and Noida, that
focusses on creating new solutions and technologies for the company. We hope to take that nuber up, but cannot divulge any details now."
Tech Mahindra's attrition rate dropped from 26 per cent last year to 17 per cent this year.
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