NEW DELHI, JANUARY 10: Mahindra British Telecom Ltd, a 60:40 software jointventure between Mahindra & Mahindra and British Telecom, plans to seek alisting on Nasdaq by March this year. Mahindra British Telecom is one of thelargest providers of software services to British Telecom.Confirming this, M&M director finance Bharat Doshi told The FinancialExpress, "We are examining all options towards a Nasdaq listing by March orearly next fiscal. The option to get the company listed on the domesticbourses has also not been ruled out.""We are also exploring the option of listing either Mahindra British Telecomholding company Mahindra Information Technology Services Ltd," said Doshi.Although the company is going ahead with the plan for a Nasdaq listing,company officials stoutly denied any plans of altering the equity holdingpattern. "The question of reducing our stake in the joint venture does notarise," said Doshi. According to sources, the offering will comprise around15-20 per cent of MBT's stock.According to analysts, the listing of the company on Nasdaq is expected toresult in a substantial appreciation of promoters' investment in the companysince its share is expected to fetch a hefty premium between Rs 1,200 to Rs1,500 per share.Mahindra British Telecom reported a total income of Rs 101.37 crore in1997-98 and a net profit of Rs 29.28 crore, a 150 per cent jump over lastyear's profit of Rs 12.12 crore. Earning per share (EPS) on an equity ofaround Rs 4.9 crore rose to Rs 60 from Rs 25.Doshi added that it was too early to comment on other details related to theissue moalities, including pricing and the total amount to be raised.According to sources, the company has already initiated the accountingcompliance requirement as per the US GAAP accounting norms.M&M's software and telecom investments are routed through a 100 per centsubsidiary, Mahindra Information Technology Services Ltd (MITS). MITS hasfour subsidiaries - Mahindra Network Services, Mahindra British Telecom, MBTInternational and Mahindra Applied Systems Technology.Other IT companies in the group include M-Assist and M&M Networking, both ofwhich are 100 per cent subsidiaries. Recently, the equity holding of M&M inthese IT companies was transferred to MITS.The investment by MITS was initiated as part of the restructuring exerciseinitiated by the M&M group two years ago. The group restructured its 18subsidiaries under three business groups.The parent company, Mahindra & Mahindra, continues to hold stake in the coreauto business. The software technology business has been transferred toMITS, while the other non-core businesses like realty, infrastructure, andengineering consultancy have been grouped under Mahindra Holding & Finance(MHFL). Both MITS and MHFL are wholly owned subsidiaries of Mahindra &Mahindra.According to MBT's earlier plans, the company is planning to expand itsservices geographically by industry and in specific technology segments byestablishing more business development offices in the United States anddevelop new partnerships in Europe and other parts of the world.
