The Rs 11,000-crore (Rs 110 billion) Mahindra & Mahindra group is planning to take three group companies -- Mahindra British Telecom, Mahindra & Mahindra Financial Services and Mahindra Automotive Steels -- public.
"As a policy, the Mahindra group wants its flagship in every sector to be listed," Anand Mahindra, vice-chairman and managing director of Mahindra & Mahindra, told Business Standard after the rollout of its first tractor in China.
The Mahindra group has over 20 companies operating in six sectors -- automotive, farm equipment, auto component, trade and financial services, information technology and infrastructure.
Mahindra & Mahindra (the flagship company of the group which is into automotive and farm equipment) and Mahindra Gesco (the group's leading infrastructure company) are listed entities.
"The flagship companies of information technology, trade and financial services and automotive components will be listed," Mahindra said. He, however, refused to give any timeframe for the listing.
The timing of the initial public offers would depend on two crucial factors -- capital requirement of the company concerned and the condition of the stock market, he added. Since these are unlisted entities, their financials are not in the public domain.
Sources close to the group said Mahindra Automotive Steels would be the first off the block to get itself listed with the bourses. It would be followed by Mahindra British Telecom and Mahindra & Mahindra Financial Services.
Mahindra Automotive Steels recently acquired Amforge, an auto component maker. As a part of the scheme of amalgamation between the companies, Mahindra Automotive will issue one equity share of Rs 10 for every one Amforge share of Rs 10.
Also, one 4 per cent non-cumulative, redeemable, non-convertible preference share of Mahindra Automotive of Rs 31 will be issued for every one equity share of Amforge of Rs 10 each fully paid up.
Therefore, Mahindra Automotive has to be listed immediately.
The automotive and farm equipment companies of the group are Mahindra & Mahindra, Automartindia Ltd, Mahindra (China) Tractors Ltd, Mahindra USA Plc, Mahindra Gujarat Tractors and Mahindra Subhlabh Services.
In the trade and financial services sector, the group's outfits are Mahindra Intertrade, Mahindra Steel Service Center, Mahindra & Mahindra Financial Services.
The companies operating in the technology sector are Mahindra British Telecom, Bristlecone, Mahindra Logisoft Business Solutions, Mahindra Engineering Services, Mahindra Special Services group.
The infrastructure business is being run by Mahindra Gesco Developers, Mahindra Acres Consulting Engineers, Mahindra Holdings and Resorts, Mahindra Industrial Park, Mahindra Ashtech.
The automotive components companies of the group are Sinoplast, Mahindra Sona, Musco and Amforge.