M&M to raise its stake in Tech Mahindra
The main stakeholder of Tech Mahindra, Mahindra & Mahindra has said that it will be raising its existing stake in the tech firm to 48.24 per cent. And for this, it will be buying 5.49 per cent from its existing partner, UK’s BT Group Plc. BT has 30 per cent at present.
M&M is currently the biggest maker of commercial vehicles like tractor and sports utility vehicles. It said that the deal will be final by December 2 or March 31 of the next year. It will consider the existing market price, as per the information given to the stock markets.
On Friday at the BSE the closing price of the share was Rs. 625. Presently, the market cap of the company is Rs. 7,860 crore and keeping that in mind M&M will have to sell Rs. 432 crore for the stakes.
No comments were available from either of the company. But sources close to the development said that M&M has also waived off the first right of refusal to buy BT’s remaining 24.5 per cent. If that is true then BT has all the rights to sell the stakes in the open market.
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