Telecommunication Software Company Mahindra British Telecom Ltd (MBT) on Thursday filed a draft offer document for its initial public offering with the Sec urities and Exchange Board of India (SEBI), in order to mop funds for part-financing its expansion activities. MBT's IPO would consist of a fresh issue of equity shares amounting to about five per cent of post IPO capital, while the promoters of the company would simultaneously offer for sale about six per cent of the post IPO capital from their current holding, according to a company release in New Delhi .
The move would allow the company to meet SEBI's minimum dilution requirement of 10 per cent for it companies. The total offer of 11 per cent of the post IPO capital would also include about one per cent as a reservation for eligible shareholders of Mahindra and Mahindra Ltd as permitted by SEBI guidelines, it said. The funds mopped up from the issue would be mainly deployed for part financing of the company's development centres and increamental working capital requirements, it added.
The book running lead manager for the IPO is Kotak Mahindra capital company. The company's consolidated income from services for 1999-2000 was Rs 257 crore and its profit after tax was pegged at Rs 65 crore.
Aq 57:43 joint venture between Indian automotive group Mahindra and Mahindra and British Telecom, MBT'S major customers include at and MCI worldcomm amongst others.
Bureau Report