TCS onsite staff kept out of IPO

May get cash/bonus

About 10,000 overseas or onsite employees of Tata Consultancy Services, representing roughly one-third of the software services firm's work force, will be "compensated equally" since they cannot bid for the company's public issue that opens on July 29.

"Rules prevent us from offering shares to employees based abroad, but adequate care will be taken to ensure that they receive as much benefit as local staff will get," said Phiroz Vandrevala, executive vice-president, TCS.

TCS officials said the overseas staff would be offered either bonuses, cash, perks or any other means.

They added that three schemes were being planned for the purpose.

Under the first scheme, senior-most employees will be given one share for one rupee. "This offer will be based on the experience of the employee at the company," said Vandrewala. It is learnt that about 1,000 to 1,500 employees would be eligible for this scheme.

Under the second, a sum of Rs 90 crore has been kept aside for those who are not be covered by the first scheme. "This scheme is for those who are juniors in experience and age. They will be paid in cash," said S Mukhopadhyay, senior manager, Tata Sons.

Under the third offer, ten per cent of the total 5.54 crore shares would be reserved for some employees and directors.

However, these shares will be offered at the market price, and, hence, there would not be any price benefit apart from the fact that ten per cent of shares is reserved for them.

TCS has offices in 32 countries and development centres in ten nations. Set up in 1968, when the software industry was still in its infancy, the company today has 30,000 on its payrolls. A majority of the overseas workers are based in the US and UK.