TCS is the only company among India’s top four software services players which has not yet listed on a US stock exchange.
MUMBAI: Tata Consultancy Services (TCS), India’s largest software services player, has indicated that it may plump for a share sale and subsequent listing in the United States rather than in Europe.
“We want to definitely be listed in markets that are key and strategic to our business. We will take a decision on this fairly soon,” said S Ramadorai , chief executive and managing director of TCS, in an exclusive interview with DNA Money.
TCS is the only company among India’s top four software services players which has not yet listed on a US stock exchange. Infosys Technologies and Satyam Computers are already listed on Nasdaq while Wipro is listed on the New York Stock Exchange.
TCS had raised close to Rs 4,800 crore in its maiden domestic issue in 2004.
“We will look at an international listing for reasons like creating the currency for acquisition, offering stock option plans for our international employees, raising money and the premium on price that the share enjoys as compared to the domestic price. We also get better visibility, which is good for branding in our key foreign markets,” Ramadorai said.
In November this year, media reports had suggested that the company had dropped the idea of a listing in Europe. Prior to that Ramadorai had talked about the London Stock Exchange and the Deutsche Börse as possible candidates for listing in Europe.
The cost of maintaining a listing in the US is more than in Europe but despite this the US scores because a listing there is good for the company’s profile, especially since most of TCS’ clients are in north America.
Ramadorai also said that a large part of TCS’ revenue target of $10 billion by 2010 would be met through the infrastructure services and BPO segments.
“These two segments do not contribute much to our revenues yet, but we expect them to contribute significantly as we go forward. Acquisitions would be part of the strategy,” he said.
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