Tech Mahindra is an Indian multinational company providing Information Technology (IT) and Business Process Outsourcing (BPO) services. A subsidiary of Mahindra Group, the company is headquartered in Pune and has its registered office in Mumbai.
As of April 2020, Tech Mahindra is a $5.2 billion company with 125,236 employees in 90 countries. The company ranked 5th in IT companies in India and 47th in the 2019 Fortune India 500 list. On 25 June 2013, Tech Mahindra announced the completion of the merger with Mahindra Satyam. Tech Mahindra has 973 active customers as of April 2020.
History
Mahindra & Mahindra started joint venture with British Telecom in 1986 as a technology outsourcing firm. British Telecom initially had around 30 percent stake in the Tech Mahindra company. In December 2010, British Telecom sold 5.5 per cent of its stake in Tech Mahindra to Mahindra & Mahindra for Rs 451 crore.[10] In August 2012, British Telecom sold 14.1 per cent of its stake to institutional investors for about Rs 1,395 crore. In December 2012, British Telecom sold its remaining 9.1 per cent (11.6 million shares) shareholding to institutional investors for a total gross cash proceeds of Rs 1,011.4 crores. This sale marked the exit of British Telecom from Tech Mahindra.
Acquisition of Satyam Computer Services Ltd.
After the Satyam scandal of 2008-09 Tech Mahindra bid for Satyam Computer Services, and emerged as a top bidder with an offer of INR 58.90 a share for a 31 percent stake in the company, beating a strong rival Larsen & Toubro. After evaluating the bids, the government-appointed board of Satyam Computer announced on 13 April 2009: “its Board of Directors has selected Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest bidder to acquire a controlling stake in the Company, subject to the approval of the Hon’ble Company Law Board.”
Merger with Mahindra Satyam
Tech Mahindra announced its merger with Mahindra Satyam on March 21, 2012, after getting approval of the two company boards to create an IT company worth US$ 2.5 billion. The two firms had received the go-ahead for the merger from the Bombay Stock Exchange and the National Stock Exchange. On June 11, 2013, Andhra Pradesh High Court gave its approval for merging Mahindra Satyam with Tech Mahindra, after getting approval from the Bombay high court. Vineet Nayyar said that technical approvals from the Registrar of Companies in Andhra Pradesh and Maharashtra are required which will be done in two to four weeks, and within eight weeks, the new merged entity would be in place. The new organization would be led by Anand Mahindra as Chairman, Vineet Nayyar as Vice Chairman, and C. P. Gurnani as the CEO and Managing Director. On June 25, 2013, Tech Mahindra announced the completion of its merger with Mahindra Satyam to create the nation’s fifth largest software services company with a turnover of US$2.7 billion. Tech Mahindra got the approval from the registrar of companies for the merger at 11:45 pm on June 24, 2013. July 5, 2013 has been determined as record date on which the Satyam Computer Services (‘Mahindra Satyam’) shares will be swapped for Tech Mahindra shares under the approved scheme. Mahindra Satyam (Satyam Computer Services), was suspended from trading with effect from July 4, 2013, following the merger. Tech Mahindra completed share swap and allocated its shares to the shareholders of Satyam Computer Services on July 12, 2013. The stock exchanges have accorded their approval for trading the new shares with effect from July 12, 2013 onwards. Tech Mahindra posted net profit of INR 686 crore for the first quarter ended June 30, 2013, up 27% compared to the corresponding quarter the previous year.