Mouri Tech IPO: Company Plans to Raise ₹1,500 Crore via Public Offering

IT solutions provider Mouri Tech IPO has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,500 crore through an Initial Public Offering (IPO). The Hyderabad-based company, which operates across the United States, Europe, the Middle East and Africa (EMEA), and India, intends to use the IPO proceeds for a combination of debt repayment, working capital needs, and strategic acquisitions.

IPO Structure and Offer Details

The IPO comprises two components: a fresh issue of equity shares worth ₹440 crore and an offer for sale (OFS) of ₹1,060 crore by promoters and existing shareholders. This structure allows promoters and key investors to divest some of their holdings while raising funds for company expansion.

• Fresh issue: ₹440 crore
• Offer for Sale (OFS): ₹1,060 crore

Under the OFS, the following shareholders will divest their stakes:

• Promoter Sujai Paturu will sell shares worth ₹615 crore.
• Promoter Anil Reddy Yerramreddy will offload shares worth ₹316 crore.
• Existing shareholder Srinivasu Rao Sandaka will sell shares worth ₹129 crore.

Pre-IPO Placement

Mouri Tech may consider raising ₹88 crore through a pre-IPO placement round. Should this pre-IPO round be successful, the size of the public offering will be reduced proportionately.

Use of Proceeds

The company plans to use the funds from the fresh issue for multiple purposes, aimed at improving its operational and financial position:

• ₹165 crore will be allocated for debt repayment of its subsidiary, MT USA.
• ₹125 crore will go towards working capital requirements to support business growth and operations.
• The remaining amount will be used for inorganic growth, such as acquisitions of unidentified companies, as well as for general corporate purposes.

About Mouri Tech

Founded in Hyderabad, India, Mouri Tech is an IT solutions provider with a global presence. The company offers a wide range of services, including digital transformation, cloud solutions, and enterprise resource planning (ERP). Mouri Tech operates delivery centers in Hyderabad (Telangana), Bengaluru (Karnataka), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Kolhapur (Maharashtra), and Indore (Madhya Pradesh).

Competitive Landscape

According to the F&S report, Mouri Tech faces competition from some of the largest players in the IT services sector, including:

• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• HCL Technologies
• Tech Mahindra
• LTI Mindtree
• Persistent Systems
• Coforge
• Happiest Minds
• Birlasoft
• Mphasis
• Sonata Software
• Zensar Technologies

Despite the competitive environment, Mouri Tech has established a strong foothold in key markets across the globe.

Lead Book Running Managers

The IPO is being managed by prominent investment banks, including Nuvama Wealth Management, ICICI Securities, and JM Financial. These firms will play a crucial role in overseeing the offering and ensuring a smooth execution process.

Conclusion

Mouri Tech’s ₹1,500 crore IPO is set to be one of the notable offerings in the IT sector this year. With plans to repay debt, boost working capital, and pursue acquisitions, the company is positioning itself for sustained growth in the fast-evolving IT services industry. Investors will be closely watching this IPO as Mouri Tech aims to strengthen its market position while competing with industry giants.