• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Aug. 27 The scrip of telecom solutions vendor Tech Mahindra has seen a lot of buying activity on the bourses in the last one month. In a weak market, the shares of Tech Mahindra have moved up by 8.34 per cent (in the last one month alone).

According to marketmen tracking the stock, the company’s scrip has benefited from reports that the UK-based telecommunication major BT is all set to relinquish some part of its holding in the city-based company. While Mahindra & Mahindra’s stake stood at 44.25 per cent stake, Mahindra BT Investment Co Mauritius holds 8.17 per cent stake in the company.

According to the data available on the stock exchanges, BT has a direct stake of about 31.04 per cent in the Mahindra group company. Tech Mahindra is a joint venture company of the Mahindra group and BT. BT is also the largest client of Tech Mahindra and accounts for around 60 per cent of the telecom services provider’s revenue.

In the last three years alone, Tech Mahindra has been growing by over 30 per cent a year in revenue terms. Currently, it is the sixth-largest software exporter in the country.

A leading international newspaper also reported a day ago that BT is considering selling a large part of its stake in Tech Mahindra, as it does not fit into BT`s ‘long-term strategy’. “Mahindra & Mahindra is not expected to bid for the stake, as it wants the company to remain listed and would need to be comfortable with any future partner,” the newspaper report said.

Even today, the Tech Mahindra scrip went up by over five per cent in the early morning trade. However, it pared all its gains towards the end of the trading session, to close at Rs 777.1, around one per cent lower than the previous day’s close. This was largely due to a statement issued by one of Tech Mahindra’s senior officials, who termed the development as ‘speculative’.

“We do not comment on rumours or speculation. As a strategic partner, we have enjoyed a great relationship with BT over many years. We will continue delivering on long-term contracts and win new business,” Mr Sanjay Kalra, President, Strategic Initiatives, Tech Mahindra, said.

More Stories on : Stocks | Mergers & Acquisitions | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line