"I think we will shortlist (companies) and various preliminary activities are going on," L. Ravichandran, president of IT services at Tech Mahindra, told the Reuters India Investment Summit in Bangalore on
Wednesday.
The company, a unit of tractor and utility vehicle maker Mahindra & Mahindra , will announce its intent to merge with Mahindra Satyam in two to three weeks, he said.
"(The merger) does take time with the high court approval and the SEBI approval and various things," said Ravichandran, referring to the market regulator Securities and Exchange Board of India.
"So it could take some time."
Tech Mahindra, which acquired Mahindra Satyam in April last year and is operating it as a separate unit, has said it can only merge the fraud-hit firm into the parent after the restated results of Satyam are announced.
Mahindra Satyam, which has not reported results beyond the September quarter in 2008, is scheduled to report its restated results on Wednesday.
Tech Mahindra expects margin pressure to ease in the next two quarters and pricing to return to pre-recession levels in two to three years, Ravichandran said.
He added the company, which draws about 40 percent of its revenue from BT Group Plc, expects growth to come from other customers.
British telecoms provider BT owns about a third of Tech Mahindra and is also its largest customer.
AT&T, Alcatel-Lucent, Motorola and Vodafone are among the company's other important clients.
Tech Mahindra said cable is going to be its next vertical, with the first phase in North America, from where it currently draws 29 percent of its revenue.
"We see some amount of uptick in demand in the United States," Ravichandran said, adding that Europe remains flat and it was seeing delays in big projects in that region.
Tech Mahindra has a huge exposure to the United Kingdom and Europe, with the latter accounting for about 61 percent of its total revenue in the fiscal 2010 ended March 31.
The mid-sized provider of information technology services said its second-quarter staff utilization rate is up 2-2.5 percent sequentially.
Shares in Tech Mahindra, valued by the market at $2.2 billion, were trading up about 0.88 percent at 792.75 rupees on the Mumbai market on Wednesday afternoon.
The stock has risen 7 percent since July 26, when the company reported its quarterly results.
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