Tech Mahindra has extended the timeline for completing the acquisition of a 20% equity stake in its subsidiary, Tech Mahindra Arabia Limited, to August 31, 2026. The extension was mutually agreed upon between Tech Mahindra London Limited (TMLL), a wholly-owned subsidiary, and Midad Company Limited (Midad) on July 16, 2026, as certain conditions precedent for the transaction are still underway.

The acquisition is being pursued pursuant to the exercise of a put option by Midad. Upon completion, Tech Mahindra and TMLL will collectively hold 100% shareholding in Tech Mahindra Arabia Limited. The transaction is classified as a related party transaction under Regulation 2(1)(zc) of the SEBI Listing Regulations and is being conducted on an arm's length basis.

Transaction Details

The acquisition involves the purchase of 200 equity shares of 1000 SAR each, representing the remaining 20% stake in the Saudi Arabia-based entity. The cost of acquisition is set at SAR 83.7 million, approximately equivalent to ₹206.2 crore based on an exchange rate of ₹24.64 per SAR. The consideration will be paid in cash.

Regulatory and Financial Context

Completion of the transaction is subject to approvals from the General Authority for Competition (GAC) in the Kingdom of Saudi Arabia. Tech Mahindra Arabia Limited operates in the IT services sector, providing digital system integration and consulting services for the energy, utilities, banking, and telecom sectors.

For the financial year ended March 31, 2025, the target entity reported a turnover of SAR 181.6 million and a net worth of SAR 86.57 million. The company's turnover has grown from SAR 161.34 million in FY2022-23 to SAR 181.56 million in FY2024-25.

Tech Mahindra was at the centre of a notable block trade on the National Stock Exchange (NSE), with approximately 397078 shares transacted at a price of ₹1539.3 per share. The total deal size aggregated to ₹61.12 crore, marking a sizeable single-transaction activity in the stock.

Block Trade Details

The following table summarises the key parameters of the block trade:

Block trades are large-volume transactions typically executed outside the open market order book to minimise price impact. Such trades are closely monitored by market participants as they often reflect the activity of institutional investors, including domestic mutual funds, foreign portfolio investors, or other large entities. The identity of the buyer and seller in this transaction has not been disclosed in the available data.