Tech Mahindra, the software unit of Mahindra & Mahindra, plans to sell at least $100 million in shares through an initial public offering in India within 12 months, the company president, C.P. Gurnani, said.

"We're definitely going for an IPO," Gurnani said in an interview in Singapore Friday. "Similar companies would raise at least $100 million to $150 million. At a subsequent time, we may go to list in the U.S."

Tech Mahindra, based in Pune, India, plans to sell shares to fund expansion and hire more workers as customers such as Motorola tap growing demand for mobile phones in India. Tech Mahindra provides software to Motorola and Vodafone Group.

Indian companies raised about $10 billion selling stocks and convertible bonds in the first five months of this year, 69 percent of the amount raised in all of 2005, according to Bloomberg data.  

Tech Mahindra plans to hire about 5,000 people, mainly in India, in the year ending March 31, 2007, Gurnani said. The company has about 11,500 employees.

Tech Mahindra's net income more than doubled to $53 million as sales climbed 31 percent to $280 million in the year ended March 31, Gurnani said.  

The company expects revenue to increase by more than 40 percent for the fiscal year ending in March, he said.

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