Under a recent announcement made by the fourth-largest IT Company in the country, AT&T has picked up an 8% stake in the IT major, Tech Mahindra for a whopping $1197 million.

While AT&T is one of the largest clients of Tech Mahindra along with BT, the company purchased the stock in an off-market deal, according to the information provided to the stock exchanges.

The amount of deal is still not specified but the calculations are being made on the basis of the closing price of the day of the deal i. e. Rs. 911.85. AT&T has bought a mind-boggling 9.87 million shares in the IT major.

Notably, AT&T's arch rival BT owns 31% stake in Tech Mahindra and roughly account for 40% of the revenue generated by the Indian company. However, experts believe this deal as an attempt to lessen its dependence of BT by Tech Mahindra. In fact, BT has also been looking at offloading a part of its stake in Tech Mahindra but hasn't been able to do so under the low valuations that the company has been getting due to the financial meltdown.