British telecom giant BT has offloaded 9.1% stake in Tech Mahindra for Rs. 1,011 crore, marking its exit from the Indian IT services firm after 26 years.
Promoters Mahindra & Mahindra currently holds 47.54% stake in Tech Mahindra and is in the process of merging Mahindra Satyam with itself.
BT, which initially held 30% in Tech Mahindra, has been offloading its stake in a staggered manner since 2010. It sold 5.5% stake to promoters Mahindra & Mahindra in 2010. In August 2012 it sold 14.1% stake to institutional investors for about Rs. 1,395 crore.
BT sold 11.6 million shares at Rs. 871 apiece, a discount to Tech Mahindra's current stock price, through block deals.
BT's stake sale to institutional investors triggered a spurt in Tech Mahindra's share price, which rose 3.7% to Rs. 911 on the Bombay Stock Exchange on Wednesday.
BT Group and Mahindra & Mahindra co-founded technology outsourcing firm Tech Mahindra in 1986. The firm, with key focus on telecom sector, remains a key supplier to the BT Group.