BT may sell stake in Tech Mahindra

British Telecommunications Plc (BT) may sell part of its stake in Indian IT major.

Written by Agencies | New Delhi | Published: August 29, 2012 10:15:46 pm

Global British Telecommunications Plc (BT) may sell part of its stake in Indian IT major Tech Mahindra through an open market transaction to raise an estimated Rs 500 crore.

According to investment bankers involved in the proposed deal,BT Plc may look at selling 5 per cent stake,out of its total holding of little over 23 per cent,in Tech Mahindra as early as tomorrow morning.

When contacted,Tech Mahindra officials declined to offer any comment on the matter.

At the current market price,a stake sale of 5 per cent could be worth more than Rs 500 crore. A final call on the stake sale,proposed to be conducted through a block deal,would taken tomorrow after taking into account the market conditions.

BT might even consider a stake higher than 5 per cent if it is able to get a good price in the proposed block deal.

The bankers are open to the idea of considering the share sale on Friday if the market conditions are not found to be conducive tomorrow.

Tech Mahindra shares fell 0.8 per cent in today’s trade at the BSE to Rs 835.60. The company currently commands a market capitalisation of Rs 10,658 crore and a deal has been proposed by the Mahindras for its merger with the group’s another IT firm Mahindra Satyam.

Sources said that BT has been looking at part-sale of its stake in Tech Mahindra for quite some time,but has been waiting for right market conditions to go ahead.

At the end of last quarter,the total promoter holding in Tech Mahindra stood at 70.78 per cent,which included 47.57 per cent with Mahindra & Mahindra,23.16 per cent with BT Plc and 0.05 per cent with Mahindra BT Investment Company Mauritius Ltd.

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