MindTree to raise $70M via IPO

By agencies   |   Thursday, 31 August 2006, 07:00 Hrs
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BANGALORE: Bangalore based mid-size IT services company MindTree consulting will $70 million via a initial public offering early next year, a senior company official said. Ashok Soota, Chairman and Managing Director of MindTree said, “Our board meeting in October will take a final decision on that, but the target date would be around February 2007.” He said the board would also decide on how much money the company wants to raise. “In terms of size, it will be finally decided at the board meeting, but my guess is that it would be about $70 million, plus or minus $10 million.” Five former Wipro executives founded MindTree in 1999. Today it has some high profile clients like Unilever, Volvo and AIG. Soota also said even after the IPO, VCs would remain on board of the company. VCs own about 40 percent of the company. “Logically, we have got to give an exit path to the venture capitalists and a means of monetizing the gains to our people.” “The understanding that we have so far from them is that they are all interested in remaining on, and so we don't expect a large secondary element to this issue," he said.