Hyderabad-based IT solutions provider Mouri Tech has filed preliminary documents with the Securities and Exchange Board of India (SEBI) to raise Rs 1,500 crore through an initial public offering (IPO). The IPO includes a fresh issue of Rs 440 crore and an offer-for-sale (OFS) of Rs 1,060 crore by promoters and an existing shareholder. Proceeds from the fresh issue will be used to repay debt, fund working capital, and support acquisitions. With a significant market presence across the US, Europe, Middle East, Africa, and India, Mouri Tech competes with major IT firms like TCS, Infosys, and Wipro.

Mouri Tech Files for Rs 1,500 Crore IPO

Key Offering Structure Mouri Tech has submitted draft papers to SEBI to launch an IPO valued at Rs 1,500 crore. The IPO structure comprises a fresh issue of equity shares worth Rs 440 crore and an offer-for-sale (OFS) of Rs 1,060 crore by existing promoters and a shareholder, according to the Draft Red Herring Prospectus (DRHP). The IPO also includes a reserved portion for eligible employees, reflecting the company’s commitment to its workforce.

Details of Offer-for-Sale (OFS)

Significant Stake Sale by Promoters and Shareholders Under the OFS component, promoters Sujai Paturu and Anil Reddy Yerramreddy will sell shares valued at Rs 615 crore and Rs 316 crore, respectively. Additionally, existing shareholder Srinivasu Rao Sandaka plans to divest equity shares worth Rs 129 crore. This substantial divestment indicates the promoters’ strategy to monetize their holdings while still retaining a significant stake in the company.

Pre-IPO Placement and Adjustments

Potential Pre-IPO Funding Round Mouri Tech may consider raising up to Rs 88 crore through a Pre-IPO Placement round. Should this pre-IPO round be completed, the size of the fresh issue will be adjusted accordingly, reducing the overall amount raised through the fresh issuance of shares. This approach allows the company to secure capital before the public offering, potentially enhancing investor confidence in the IPO.

Utilization of IPO Proceeds

Debt Repayment and Strategic Investments Proceeds from the fresh issue will be strategically deployed, with Rs 165 crore allocated for repaying the debt of its subsidiary, MT USA, and Rs 125 crore dedicated to meeting the company’s working capital requirements. The remaining funds will be used for inorganic growth initiatives, including potential acquisitions, and other general corporate purposes. These allocations underscore Mouri Tech’s focus on strengthening its financial position and expanding its market presence.

Global Presence and Competitive Landscape

Expanding Footprint and Market Competition Mouri Tech operates globally, with a strong presence in the US, Europe, Middle East, Africa (EMEA), and India. Its delivery centers are strategically located in Hyderabad, Bengaluru, Chennai, Visakhapatnam, Kolhapur, and Indore, enhancing its service capabilities across key regions. The company competes with industry giants such as TCS, Infosys, Wipro, HCL, and Tech Mahindra, among others, positioning itself as a formidable player in the competitive IT services market.

Lead Managers for the IPO

Expert Financial Advisors Appointed Nuvama Wealth Management, ICICI Securities, and JM Financial have been appointed as the book-running lead managers for the IPO. These seasoned financial advisors bring extensive expertise in managing large-scale public offerings, ensuring that Mouri Tech’s IPO is executed with precision and reaches a broad spectrum of institutional and retail investors.