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IT services firm Tech Mahindra Ltd will announce its intent to merge with in two to three weeks, a top official said. "(The merger) does take time with the high court approval and the approval and various things," said L. Ravichandran, president of IT services at Tech Mahindra, referring to the market regulator Securities and Exchange Board of India.
"So it could take some time," he said at the Reuters India Investment Summit in Bangalore on Wednesday. Tech Mahindra, which acquired Mahindra Satyam in April last year and is operating it as a separate unit, has said it can only merge the fraud-hit firm into the parent after the restated results of Satyam are announced.
Tech Mahindra is also looking to acquire companies with revenue of $50-$100 million. "I think we will shortlist (companies) and various preliminary activities are going on," added L. Ravichandran.
The company, a unit of tractor and utility vehicle maker Mahindra & Mahindra , expects margin pressure to ease in the next two quarters and pricing to return to pre-recession levels in two to three years, he said.
Ravichandran added the company expects customers other than its top client, BT Group Plc, to drive growth.
British telecoms provider BT owns about a third of Tech Mahindra and is also its largest customer, accounting for more than 40 percent of its revenue.
Mahindra Satyam, which has not reported results beyond the September quarter in 2008, is scheduled to report its restated results on Wednesday.