Financial Daily from THE HINDU group of publications
Thursday, Jun 17, 2004
Financial Daily from THE HINDU group of publications Thursday, Jun 17, 2004 |
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IPOs Info-Tech - Telecommunications TCS proceeds to fund mainly telecom: Irani Our Bureau
Bangalore , June 16 TATA Sons will plough back a majority of the proceeds from initial shares sale of Tata Consultancy Services to its telecom company Tata Telecom, the Tata Sons Director, Mr J.J. Irani, has said. Telecom, along with software, steel and automobiles, which have been identified as future growth triggers for the Tatas, will draw a majority of future investments, he added. Investments close to Rs 20,000 crore has been earmarked for Tata Telecom over the next three-four years, Mr Irani said. The company has invested only Rs 6,000 crore in the telecom venture till date. "Telecom is something that will keep on rising, the slope of the rise may change," he added. The much-awaited TCS IPO will "certainly" hit the market after the Budget, Mr Irani said. TCS, which is the biggest local software exporter, "has been in the shadow as it is privately held", and will raise capital in the Rs 5,500 crore - Rs 6,000 crore through the IPO, he added. According to the red herring offer document of the IPO, TCS will pay Tata Sons close to Rs 2,300 on transfer of ownership. Meanwhile, Tata Sons are exploring the possibility to foray into biotechnology though no definite road map has been drawn up till date, Mr Irani said. "It's on our radar... as and when opportunity emerges, we will take it up," he added. The company also said its proposed steel project at Gopalpur "has not taken off", as the promised infrastructure has not been provided though it has acquired the required land. Hence, "we are expanding our Jamshedpur facility," he added. Commenting on steel prices, Mr Irani said that "prices have stabilised now and the prices are now licked to global prices".
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