The Telegraph
Thursday , December 13 , 2012
Since 1st March, 1999
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BT exits TechM

Mumbai, Dec. 12: British telecom giant BT today exited Tech Mahindra by selling its residual 9.1 per cent stake for Rs 1,011.4 crore.

The stake was sold via block deals on the bourses today. Over 22.96 lakh shares were sold on the BSE at a price of Rs 880.77 per share, while another 93.15 lakh shares were offloaded on the NSE at Rs 871 apiece.

Market circles said the shares were largely acquired by foreign institutional investors.

“BT has completed the sale of its remaining 9.1 per cent share (11.6 million shares) in Tech Mahindra to institutional investors for total gross cash proceeds of Rs 1,011.4 crore (115.7 million) at Rs 871 per share,” BT said today.

The Tech Mahindra scrip today rose nearly 3.69 per cent to Rs 910.80 on the BSE.

Market circles said the rally was because of the better price obtained for the deal. BT had reportedly eyed a floor price of Rs 855 per share.

BT sold the shares to institutional investors such as HSBC India Equity Mother Fund (5.7 million shares), ICICI Prudential Mutual Fund (1.4 million) and SBI Funds Management (700,000), according to NSE data.

Other buyers were Credit Suisse (Singapore), SBI Life Insurance company, Birla Mutual Fund, FSI (HK), Goldman Sachs International, HDFC Standard Life Insurance, IDBI Fortis Life Insurance, Prudential Asset Management (Singapore) and Soros Fund Management.

BT had set up the technology outsourcing firm in a joint venture with Mahindra & Mahindra in 1986. The British company had initially around 30 per cent in Tech Mahindra.