BT Group Plc, Britain's leading fixed line telecom company, is reportedly cutting its stake in Tech Mahindra Ltd by around 5 per cent through the share sale.
Two people with direct knowledge of the situation revealed on Wednesday that BT is selling around a fifth of his shares in Tech Mahindra in the price band of Rs 735 to Rs 790 each. The sale is expected to raise about $100 million.
The reported price band represents a discount of five to twelve per cent from the stock's Wednesday closing price of Rs 834.90 a share.
The sources said that Credit Suisse and JPMorgan are advising BT on the share sale. They also said that the British firm would have the option to upsize the block deal to $150 million. But the sources declined to be named as they were not allowed to speak to the media.
According to the stock exchange data, the British telecom giant had a 23.16 per cent stake in Tech Mahindra as of June 30. Following the sale, BT's shareholding in Tch Mahindra will slip to around 17.54 per cent.
Mahindra & Mahindra Ltd, the biggest manufacturer of tractors and sports utility vehicles in India, own majority stake in Tech Mahindra, which supplies technology services to a number of telecoms firms, including AT&T Inc. and BT.
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