Betting big on the inorganic growth strategy, Tata Consultancy Services on Thursday said its initial public offer would help bolster resources for 'significant' acquisitions for future growth.
"The IPO will give us the flexibility and currency to go ahead with merger and acquisitions," Phiroz A Vandrevala, Executive Vice President, TCS, told a press conference in New Delhi, announcing the ensuing IPO, bids for which opens on July 29.
"All our acquisitions so far have been cash acquisitions and there is a limit to such acquisitions. Through listing, we would have created a currency for M&A," he said.
He said that the company has an M&A cell which, at any given point in time, receives three to four proposals. He, however, added that the company has not zeroed in on any target yet.
"We will go ahead with acquisitions not simply for topline growth, but also to improve our bottomlines, create synergy and value," Vandrevala said.
The roadshows for the 100 per cent book-built IPO which closes on August 5 started on Wednesday and will be held in 24 places.
Six teams, including one led by Tata Group Chairman Ratan Tata and another led by Tata Sons director Ishaat Hussain, will kick off the international roadshows for the IPO which is expected to net between Rs 4,279.57 crore-Rs 4,990.73 crore. The price band for the issue is Rs 775-Rs 900 per equity share of Re 1 face value.