Tech Mahindra shares fell more than 3 percent after British Telecom sold over 2.8 million shares of the company in a block deal at Rs 782 per share, according to media reports.
A NDTV report said over 4.5 million shares of Tech Mahindra were traded on the BSE. BT is selling about 5 percent of Tech Mahindra for about $100 million, Reuters had reported in Wednesday quoting two sources.
The price band for the deal is Rs 735-790 , the report said, which is a discount of 5 to 12 percent from Wednesday’s closing price of Tech Mahindra shares at Rs 834.90. According to the report, both Tech Mahindra and BT did not comment on the development.
BT is the second-largest stakeholder in Tech Mahindra. The group has said it may consider selling Tech Mahindra shares in the future if markets proved attractive, the report said. JPMorgan and Credit Suisse are advising BT on the share sale, according to the ndtv.com report.
Tech Mahindra, which provides technology services to telecoms companies including BT and AT&T, is majority-owned by Mahindra & Mahindra, India’s larger maker of sports utility vehicles and tractors, it said.