Hinduja Finance vice-chairman Solomon Raj said: "We have appointed BankAm and Andersen Consulting to privately place shares... the exact amount of equity that will be privately placed depends on the valuation that we get."

The current paid-up capital of Hinduja Finance is Rs 35 crore. The finance company intends to privately place 50 lakh equity shares (face value of Rs 10).

The move on the part of Hinduja Finance to appoint BankAm and Andersen Consulting to find a strategic partner follows its endeavour to position the company as an TMT concern, and be a fully integrated player on this front.

Mr Raj pointed out that the revenue-profile of Hinduja Finance was one that reflected higher returns from IT-related activities rather than from the conventional financial services of a non-banking finance company (NBFC).

IT-revenues are expected to cross Rs 500 crore over the next couple of years, indicating a substantial increase in non-financial activity revenue. The company has already initiated a name change probably to Hinduja TMT to reflect new initiatives on this front. A host of IT and TMT concerns now come under Hinduja Finance.

Of late, an Ashok Leyland subsidiary - Ashok Leyland IT Ltd - has been merged with Hinduja Finance, and this is now of the NBFC fully focussing on the IT sector. Mr Raj was hopeful that Hinduja Finance will get a good valuation, but refused a guess on the amount.

Industry sources, however, conjectured that Hinduja Finance could be valued at close to a staggering $1 billion. It is reasoned that when Intel took a 3.3 per cent stake in a group concern - IndusInd Media Communications - it had paid $49 million or around Rs 220 crore. Hinduja Finance has a 66 per cent stake in IndusInd Media Communications - reportedly valued at $1.5 billion - which also has a wholly-owned subsidiary In2Cable.com that is to provide internet on cable. Hinduja Finance proposes to hold 100 per cent of In2Cable.com. The company also has a majority stake in IndusInd Telecom Network, which holds 30 per cent in Fascel, and an additional direct stake of 2.3 per cent in the cellular service provider in Gujarat.