AT&T exits from Tech Mahindra

AT&T sold its entire 8.07% stake in Tech Mahindra a month after acquiring it from the Indian promoters. The US telecom major sold 7% stake in Tech Mahindra on April 28 and another 1% over the past few weeks in the market, thus making an exit from its stake in the software firm completely. The 7% stake was sold at Rs762.4 a share, giving AT&T Rs6.6bn and netting it a profit of around Rs5bn in a month's time. A bulk of the shares were purchased by LIC, according to reports. There was no official confirmation from any company. LIC already holds around 7.4% in Tech Mahindra, and the current transaction could take its stake up to 12-14%. AT&T had bought the Tech Mahindra stake in March 2010 by exercising an option it had to purchase the shares at US$3.5 a share or around Rs162 a share. AT&T acquired the right to exercise the options because it fulfilled certain revenue targets in terms of outsourcing contracts to Tech Mahindra.