Tech Mahindra to raise Rs 500-1,000 cr via QIP

IT firm Tech Mahindra today said it is planning to pay back about Rs 1,000 crore debt for which it is issuing shares on private placement basis.

"We have Rs 2,200 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 Rs 500 crore and Rs 1,000 crore of debt," the newly appointed CEO of Tech Mahindra Sanjay Kalra told in an interview to CNBC TV18.

Yesterday, 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 per cent 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 per cent stake in Satyam Computer for Rs 1,756 crore. The acquisition is expected to bring Tech Mahindra in the league of top five IT firms.