Wednesday, February 07, 2007


Type of Issue : Book Built
Issue Opens: 09 February, 2007
Issue Closes: 14 February, 2007
Issue Size : 5,593,300 (No. of Shares)

Lower Price Band : Rs.365
Upper Price Band: Rs.425

Application Multiple: 15 and in multiples there off starting with atleast 15 shares.

Maximum Shares: 255(for Retail)

Information URL :
Prospectus URL :

ISSUE Description:

Mind Tree is a mid sized offshore IT services company offering a range of services IT services ( eg. Application development, maintenance, package implementation, testing and infrastructure management services) and R & D Services (eg. Product design, re-engineering, optimization and support). It was founded by people from Wipro, Lucent and Cambridge Technology partners and has an impressive management team.
MindTree is expected to be a beneficiary of the positive demand trends for offshore IT services and post robust revenue growth.. MindTree’s revenue has risen at a CAGR of 85% over past two years.Net margins for Mindtree have expanded from 2% in F 2004 to 13% in F2006.

On the human resources front, a key area in IT companies, MindTree was ranked #2 among the best companies to work for in a survey carried out by Business today and Mercer across industries.

The management has invested in strong systems and processes. It was assessed at level 5 in both CMMi and P-CMM within 5 years of its inception. It has in house systems such as ProcessNet and KnowledgeNet to track domain/technology expertise and training.
Key customers include AIG, Avis Budget Group, Burger King, Cendant, De Beers, eBay, LSI Logic, Symantec, Unilever, Franklin Templeton, Kraft and Volvo.The largest client contributes 14% to revenue while top 5 clients contribute to around 38%.

Objects of the Issue:

1) Fund a new development center in Chennai 2) Pre pay existing loans

Key Financials for year ended March 31, 2006
Revenue Rs 4553.7 Mn PAT Rs.557.5 Mn
EPS Rs.19.96 NAV (Rs.) 61.18
RoNW 41.76%

Recommendation :

A mid size IT company having satisfied, quality clients and experienced promoters having high integrity. Mind tree has the potential to become a large size IT company over the years paying handsome returns to investors . Apply Aggressively.