TCS will acquire 20.67 per cent in WTI Advanced Technology for which it has reached an agreement with the International Finance Corporation, the private lending arm of the World Bank.

The agreement by India's largest software company, having a turnover of Rs 7,000 crore (Rs 70 billion), with IFC for acquiring the balance equity in the joint venture was signed much before TCS filed draft prospectus last week to go public.

"Recently, we entered into this agreement. Approval from the Reserve Bank of India is awaited to complete the transaction and with the acquisition of 20.67 per cent from IFC, WTI will be a subsidiary of TCS Ltd," the company said in its draft red herring prospectus.

WTI has been incorporated as a joint venture between Westinghouse Electric Corporation (United States) and Tata Sons and IFC in 1987 to address the global needs of IT enabled services.

In 2000, Westinghouse divested its holdings in WTI and it is currently under the control of Tata Sons.

TCS Ltd owns 29.62 per cent and Tata Sons owns 9.99 per cent of WTI equity. IFC held 20.67 per cent in WTI.

The company seeks more acquisitions to expand its growth and it is evaluating opportunities from time to time on this.

"We may undertake strategic acquisitions," the company said under the risk factor category, adding that this might prove to be difficult to integrate and manage or may not be successful.

The company has pursued acquisitions and strategic partnerships as part of the growth strategy, it said, adding, "Our acquisitions may not contribute to our profitability and we may be required to incur or assume debt as part of any acquisition."

In its trail of acquisitions, in 2001, the company acquired 51 per cent of the shareholding in CMC from the Government of India. In January 2004, the company acquired 75 per cent of shareholding in AFS from Swiss Airlines and in March 2004, the company bought 51 per cent of the shareholding in ASDC from Singapore Airlines and 20 per cent from Tata Industries Ltd.