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Will Directors' exit affect Tech Mahindra?
The stock of Tech Mahindra may react negatively to the news of exit of two BT Group Plc directors from the company board. Two BT-nominated directors, Mr Richard Cameron and Mr Nigel Stagg, have resigned with immediate effect from the company's board, Tech Mahindra informed the BSE on Friday. This signals that BT group will eventually exit from the company completely. BT currently owns 23 per cent stake in the company. It had already sold 5.5 per cent stake to Mahindra & Mahindra and had indicated further dilution in future. Though BT group contribution to Tech Mahindra's total revenue has come down significantly from 68 per cent five years ago to 37 per cent in the last quarter, it is still a high contribution to total revenue. Tech Mahindra, formerly Mahindra British Telecom, was formed as a joint venture between Mahindra & Mahindra Group and British Telecom in 1986.
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