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HindustanTimes Fri,25 Apr 2014

BT exits Tech Mahindra, sells 9% stake for Rs. 1,011 cr

HT Correspondent, Hindustan Times  Mumbai, December 12, 2012
First Published: 22:27 IST(12/12/2012) | Last Updated: 22:29 IST(12/12/2012)

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.

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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.

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