Tech Mahindra To Divest 100% Stake In Dynacommerce Holdings B.V.

"The Company has approved sale of 100% stake in Dynacommerce Holdings B.V., a wholly owned subsidiary of the Company to Comviva Netherlands B.V., a step-down subsidiary of the Company," said the company in its corporate filing.

The agreement for this is expected to be signed during the first week of January 2023 for a consideration of Euro 6.6 million.

"The buyer is Comviva Netherlands B.V., a wholly owned subsidiary of Comviva Technologies Limited, subsidiary of Tech Mahindra," added Tech Mahindra in its filing.

Recently, Life insurance giant in India, LIC has increased its shareholding in Tech Mahindra to 6.874%. Earlier, LIC held 4.863% of the paid-up capital of the IT major. That being said, LIC's stake in Tech Mahindra has increased by 2.011%. LIC raised its stake in Tech Mahindra in an open market purchase.

IT services exporter Tech Mahindra reported a 4 per cent year-on-year decline in consolidated profit after tax (PAT) to ₹1,285.4 crore in the second quarter of FY23 (July-September), as higher expenses offset the rise in revenue. The firm had posted a profit of ₹1,338.7 crore in the year-ago period.

Revenue for the quarter came in at ₹13,129.50 crore, up 20.6 per cent YoY over ₹10,881.30 crore in the corresponding quarter last year.

Sequentially, the revenue was up 3.3%. In constant currency (CC) terms, the dollar revenue grew by nearly 3% sequentially.

The company's scrip ended 0.078 per cent down at ₹1,021.90 at BSE.