Mahindra to raise funds through QIP
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Mahindra to raise funds through QIP
Bangalore: Tech Mahindra plans to raise funds by selling 13.6 million shares to institutional investors, reports VC Circle. It said that it plans to raise funds through a private placement or Qualified Institutional Placement (QIP). Tech Mahindra could raise more than 1000 crore by selling 13.6 million shares as per its closing price of Rs 747.45 yesterday. This would amount to a little more than 10 percent stake in the post-issued capital of the company. Tech Mahindra and Mahindra Satyam (Mahindra acquired Satyam Computers this April) will also merge at some time, the company said. "It is logical and there are a lot of synergies. I am afraid I can't give a time right now. It will be in the foreseeable future," Vineet Nayyar, Vice-Chairman of both the companies was quoted saying at a news conference. The company also announced C P Gurnani as the new CEO and S Durgashankar as CFO of Mahindra Satyam. While Gurnani was till now heading global operations of Tech Mahindra, Durgashankar was Senior VP (M&A) at Mahindra & Mahindra. Tech Mahindra had acquired a 31 percent stake in Satyam for $351 million. An open offer for another 20 percent stake in the firm has been made. The open offer made at a price of 58 per share started on June 12 and will close on July 1. The cost is expected to be around Rs 1154 crore.

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