Tech Mahindra shareholders to mull Rs 3,000 cr borrowing plan

MUMBAI: IT firm Tech Mahindra shareholders will consider a proposal to borrow Rs 3,000 crore and a share sale of 1.36 crore equity shares with institutional investors next month.

To fund the increasing business operations and future growth plans of the company, Tech Mahindra is planning to borrow up to Rs 3,000 crore, the company said in a filing with the stock exchanges.

Shareholders would also consider share sale of 1.36 crore equity shares with institutional investors, worth over Rs 1,000 crore calculated on the basis of current market price.

"In order to meet the company's ongoing plans for growth and strengthen its financial position the company needs to augment its long term resources," the filing added.

Tech Mahindra had acquired a controlling stake (31 per cent) in Satyam Computer through its wholly-owned subsidiary Venturbay Consultants and has come out with an open offer for a further 20 per cent stake in the company.

A meeting of shareholders is scheduled for July 23. Without disclosing details of the proposed share sale the company said the issue price of the equity shares will be determined at the time of the offer on the basis of current market condition.

Shareholders would also consider re-appointment of Deloitte Haskins as the auditors of the company along with appointment of three directors including M Damodaran, who recently concluded his tenure as SEBI Chairman.