New Delhi: IT firm Tech Mahindra on Wednesday said it is planning to pay back about Rs1,000 crore debt for which it is issuing shares on private placement basis.
“We have Rs2,200 crore odd debt which we took to acquire a stake in Satyam...the purpose we are taking this QIP is to retire the high cost debt. My sense is that we are looking at retiring between Rs500 crore and Rs1,000 crore of debt,” the newly appointed CEO of Tech Mahindra Sanjay Kalra said.
On Tuesday, Tech Mahindra board had approved the issue of 1.36 crore shares by way of private placement or Qualified Institutional Placement (QIP) basis.
“We have asked for about up to 10% which is about a 1.35 crore shares, but evetually what we get depends on what is the price,” he added.
Earlier in April, Tech Mahindra won the race to acquire 31% stake in Satyam Computer for Rs1,756 crore. The acquisition is expected to bring Tech Mahindra in the league of top five IT firms.
In addition, to that it would pay Rs1,134 crore to buy another 20% of the company in an open offer to shareholders, which opened on 12 June and will close on 1 July.
The company, however, did not disclose at what price the shares would be allotted for raising the funds.
Shares of Tech Mahindra closed at Rs761, up 1.81%, after touching an intra-day high of Rs778 on the BSE.