The Hindu Business Line : TCS to use IPO proceeds for `significant' buys

TATA Consultancy Services has said its upcoming initial public offer (IPO) would give it a leverage to go for "significant" acquisition deals, as part of its growth strategy.

"As far as the inorganic route for growth in concerned, we have now, through the (proposed) listing, created a currency that we can leverage for significant inorganic growth," Mr Phiroz Vandrevala, Executive Vice-President, TCS, said at a press conference here.

Stating that the company saw future growth coming from Latin America, China and Europe, Mr Vandrevala said the company's merger and acquisition team could look at these markets. Other factors driving acquisitions would be specific domain expertise in TCS' current areas of operations, such as consulting, BPO and engineering technology.

Elaborating on the company's strategy, Mr Vandrevala said TCS had a merger and acquisition cell, which at any given point of time received two to four proposals. "Our acquisition strategy will be aimed at adding value. We are not going to go for it only to build the topline. We are also conscious of the bottomline perspective. We will see what synergies we can get from the acquisition."

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