Mouri Tech Files Draft Papers For Rs 1,500 Cr IPO

Mouri Tech, an IT solutions and services company filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise Rs 1,500 crore through an initial public offering (IPO).

The IPO with a face value of Rs 10 per equity share consisted of a mix of fresh issues and offer-for-sale (OFS). The IPO comprised a fresh issue of equity shares worth Rs 440 crore and an OFS of shares worth Rs 1,060 crore by existing shareholders. The offer also included a reservation for subscription by eligible employees.

Promoters Sujai Paturu, and Anil Reddy Yerramreddy will be selling shares worth Rs 615 crore, and Rs 316 crore, respectively in the OFS. While non-promoter Srinivasu Rao Sandaka intended to offload equity shares worth Rs 129 crore.

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement, aggregating up to Rs 88 crores prior to filing of the red herring prospectus. If such placement is completed, the fresh issue size will be reduced.

Mouri Tech proposed to utilise Rs 165 crore from the net proceeds towards funding investment in one of its material subsidiaries, MT USA, for the repayment of certain outstanding borrowings availed by it and Rs 125 crore for its working capital requirements.

Further, the remaining funds will be utilised for inorganic growth through unidentified acquisitions and general corporate purposes.

Hyderabad-based Mouri Tech operates across four practice areas such as enterprise digital transformation, infrastructure services, and program management and serves to a large base of customers whose operations are diversified across industries such as business services, energy and utilities, non-profit and public sector, professional services, hospitality, media and entertainment, manufacturing, life sciences, logistics and transportation.

The company has a presence in the USA, Europe, the Middle East and Africa (EMEA) and India.

For Fiscals 2024, 2023 and 2022, the company’s revenue from customers located in the USA was Rs 940.14 crore, Rs 914.56 crore and Rs 672.1 crore, representing 82.38 per cent, 83.16 per cent and 81.19 per cent of its revenue from operations, respectively, with the remaining revenue predominantly generated from India and the EMEA region.

Mouri Tech’s portfolio includes in-house developed IT assets that encompass industry, business processes, and technological expertise. These IT assets are further classified into templates, accelerators, frameworks, tools, products, process maps, best practices, performance metrics, industry solutions, assessments, and methodologies.

Nuvama Wealth Management, ICICI Securities and JM Financial are the book-running lead managers to the issue and Link Intime India is the registrar to the offer.