To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39130238,00.htm

India's biggest IT firm mulls London float
Outsourcer inclined towards European not US listing...

By Andy McCue

Published: Monday 09 May 2005

India's biggest IT outsourcer Tata Consultancy Services (TCS) is considering plans to float on the London Stock Exchange (LSE), according to reports.

TCS is India's biggest IT firm having capitalised on the boom in offshore outsourcing by western multinational organisations and raised $1.17bn when it floated a 13 per cent share of the company on the Bombay Stock Exchange last April.

Now the company is reportedly looking at a secondary listing on the Deutsche Borse, the LSE or the US Nasdaq.

In an interview with The Telegraph TCS CEO Subramanian Ramadorai hinted that US regulatory requirements such as Sarbanes Oxley would push the company towards a European or UK listing, despite the fact that its Indian rivals Infosys and Wipro chose to float in the US.

Samad Masood, analyst at Ovum, said in a research note that the decision on the US or Europe will depend on whether raising money or raising its profile in Europe is the main strategic aim for TCS.

"A European listing could do a lot to raise the profile of TCS on the continent. Europe, and particularly the UK, is seen as a strong growth market for offshore services companies, particularly now that the US market is beginning to mature." he said. "TCS is not facing any significant financial challenges currently, and it's certainly not desperate for cash. The motivation for a secondary listing appears strategic, rather than financial. A European listing may well prove attractive."