MBT, a telecom software company, has also an outfit in the US - MBT International Inc and marketing offices abroad. The IPO will be limited to 10 per cent of the company's equity, with an additional quantum of five per cent earmarked for employee stock option plans (ESOPs). The company is planning to list its shares on domestic stock exchanges. The maiden IPO will be a combination of fresh equity issue and secondary sale through dilution of the existing holders' stakes. However, company officials declined to comment on the final equity holding of MBT post-IPO.

The MBT shareholders at an extraordinary general meeting approved proposals to raise funds through an IPO and to earmark a portion of the equity for ESOPs. The shareholders also approved a stock-split with each share of Rs 10 to be split into five shares of Rs 2 each. MBT plans to utilise the proceedings of the IPO to fuel future growth via a combination of expansion and strategic acquisitions. As a part of its expansion plans, MBT hopes to diversify its customer-base across different global locations, adding infrastructure in India and USA.

A press release said the company was planning to increase its global reach with focused sales and marketing efforts, recruiting local talent in the US, Europe, Japan, Singapore and Australia. MBT posted a net profit of Rs 20.66 crore for the first quarter of 2000-01, recording a 50 per cent rise over the corresponding quarter of the previous year. Income from operations touched Rs 78.59 crore, an increase of 53 per cent over Rs 51.51 crore.