Clarifying the rumor that BT is mulling a plan for total exit from Tech Mahindra, BT has said that the company will retain 10% share in Tech Mahindra. According to company source British Telecom (BT) currently holds over 31 per cent in the venture with Tech Mahindra. Reportedly, the company will sale 21% stake in Tech Mahindra and will retain rest of the stake, i.e. 10%.

 

Accordingly, a part sale of 21 per cent in the company would value the transaction at over Rs 1,850 crore at Thursday's closing price of Rs 771.40 on the BSE. According to market analysts the sale will help BT at a time when its profitability is on the slide. Further, it will help BT to earn a good return on the residual stake in attractive investment options in the market.

 

Both the companies have not confirmed rumor of total exit of BT from Tech Mahindra. BT's statement said that it is not looking at a total exit from Tech Mahindra. The source from BT said that while Tech Mahindra is no more a strategic investment for BT, it has substantial and long-term business interest in the Indian company.