Plans equity float later this fiscal
Bangalore, April 2
MindTree Consulting Pvt Ltd is preparing for an equity float later this financial year after having crossed the $100-million revenue mark. The company has achieved this milestone in six years since its inception.
Disclosing this MindTree Chairman, Mr Ashok Soota, said the company clocked revenues of $102 million for 2005-06, a growth of 85 per cent over previous year's $55 million. While the IT services business grew by 87 per cent accounting for 75 per cent of total revenues, the R&D services business grew by 75 per cent, accounting for the rest, Mr Soota said.
MindTree officials had stated earlier on several accounts that the company would go public once it achieved revenues of $100 million. "We will revalidate our IPO strategy in the context of the market directions sometime in September and take a call on the timing of the issue later this year," Mr Soota said.
`No investor pressure'
However, Mr Soota clarified that the company faced no pressures from its existing investors. The promoters own a majority stake in the company, while the venture capitalists own about 40 per cent stake. Till now, MindTree has raised about $23.6 million in two rounds of funding from The Capital Group, Walden International and Global Technology Ventures.
Further, Mr Soota said the company has set a revenue target of $231 million by 2007-08, bulk of which would be achieved through organic growth. "We do expect to do small acquisitions in specific domains such as the infrastructure management services among others," he said without giving details.
To raise headcount
The company also plans to add about 3,600 people to its existing headcount of around 3,200 by 2007-08 of which about 1600 would be adding in the current financial year.Related Stories:
MindTree plans to hike India headcount