Mumbai, Dec 13: Mahindra & Mahindra on Wednesday informed the Bombay Stock Exchange that Mahindra British Telecom Ltd is proposing an initial public offering of its shares. The IPO consists of a primary issue of 53,18,633 equity shares of the face value of Rs 2 each, at a price to be determined in accordance with the Securities & Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, as applicable to the 100 per cent book-building route. The IPO will also involve divestment by two existing shareholders of Mahindra-British Telecom Ltd - Mahindra information Technology Services Ltd and British Telecommunications Plc of a total of 63,82,267 equity shares of the face value of Rs 2 each by way of an offer for sale.As part of the sale offer, 10,63,700 equity shares of the face value of Rs 2 are proposed to be reserved for allocation to eligible shareholders of Mahindra & Mahindra Ltd in terms of the scheme outlined in the draft offer document.
The draft offer document will be submitted to Sebi shortly for its observations and approval.
Meanwhile, MBT is in the process of getting new customers from new regions to reduce its dependence on British Telecom. Currently, 75 per cent of MBT's revenues come from BT. MBT plans to increase its non-BT business by 5 per cent annually. MBT is now increasingly looking at US and Asia-Pacific markets for new business.
Revenues coming from the US market is increasing rapidly for MBT with an annual growth of over 200 percent .
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