Telecom major British Telecom (BT) on Thursday offloaded 14.1 per cent, or 17.9 million shares, in Tech Mahindra (TechM) to institutional investors for Rs 1,395 crore. The block deal was executed at an average price of Rs 777.73 per share. The deal took place at a significant discount with respect to yesterday’s close price of Rs. 834.
Going by the June quarter numbers, the UK-based telecommunications player is the largest client for Tech Mahindra, contributing almost 1/3rd (36%) to its revenue.
AT&T had purchased 8.07 per cent stake in the company in March 2010, which it sold for $107 million.
After the stake sale to institutional investors, BT now holds just about 9 per cent. BT has been slashing its stake in Tech Mahindra. Over the last year, BT’s shareholding in the Indian company fell to 23.16.
Analyst such as Ambrish Baliga of Way2Wealth even advised to sell shares of Tech Mahindra due to lack of upside.