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Mahindra British Telecom to go public

British Telecom and India's Mahindra & Mahindra group have decided on an initial public offering by their Indian software arm, Mahindra British Telecom, a statement from the venture said.

"The IPO will be a combination of fresh equity issue and secondary sale through dilution of the existing equity holders," the MBT statement added.

It added that funds from the proposed issue will be used for acquisitions and expansions.

Mahindra & Mahindra group is the majority owner with 60 percent in MBT while British Telecom holds the rest.

Mahindra & Mahindra Limited, India's leading maker of utility vehicles and tractors, is the flagship of the M&M group.

MBT shares are proposed to be listed on Indian stock exchanges, the statement added.

MBT said an extra-ordinary general meeting of its shareholders approved the IPO plan plus issue of employee stock options.

A plan to split the face value of the shares from one share of Rs 10 to five shares of Rs 2 each was also approved, it added.

The IPO will be limited to 10 per cent of MBT's equity with an additional amount of up to 5 per cent earmarked for ESOPs.

MBT makes software for telecommunications, engineering e-business and the Internet.

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