British telecom company BT has confirmed that it is selling over two thirds of its stake in Tech Mahindra to institutional investors.
On Thursday, the company confirmed that it had completed the sale of a 14.1 per cent holding in the company at a price of Rs 777.73 a share, generating proceeds of Rs 1,390 crore (£158.6 million).
While it retains a 9.1 per cent holding in the company, it said that it would consider further sales in future.
BT, which had sold 5.5 per cent stake to Mahindra & Mahindra in 2010, had previously stated that it would consider selling its stake further, should the market conditions prove right
“Tech Mahindra remains a key supplier to BT,” the company insisted.
Tech Mahindra was set up as a joint venture between Mahindra & Mahindra and BT in 1986.
Shares of Tech Mahindra fell sharply ahead of BT’s confirmation, when speculation had mounted about a possible stake sale of around 5 per cent.
Its shares ended the day 5.2 per cent lower at Rs 792.15 on the Bombay Stock Exchange.
When contacted by Business Line in Mumbai, a Tech Mahindra spokesperson refused to comment.