Tech Mahindra announced the cessation of its wholly-owned subsidiary Mahindra Educational Institutions (MEI) effective December 26, 2025, following a significant equity dilution that reduced the company's stake from 100% to just 0.6%.

Equity Allotment Details

The cessation occurred after MEI's Board of Directors approved the allotment of equity shares to Mahindra Knowledge Trust (MKT) on December 26, 2025. The transaction involved the following parameters:

Tech Mahindra received intimation of this allotment from MEI on December 26, 2025, at 5:17 PM IST, and subsequently informed the stock exchanges under Regulation 30 of SEBI Listing Regulations.

About Mahindra Educational Institutions

MEI was incorporated under Section 25 of the erstwhile Companies Act 1956, which corresponds to Section 8 of the current Companies Act 2013. The subsidiary's financial position as of March 31, 2025, showed:

Despite having substantial net worth, MEI recorded zero turnover, indicating it was a non-operating subsidiary focused on educational activities rather than commercial operations.

Mahindra Knowledge Trust Profile

Mahindra Knowledge Trust, the entity that acquired the majority stake in MEI, is a registered trust established for public charitable purposes. The trust operates in several key areas:

• Promotion of education
• Relief of the poor
• Medical relief
• Advancement of other objects of general public utility

Importantly, MKT does not belong to Tech Mahindra's promoter, promoter group, or group companies, making this transaction an arm's length deal that does not fall under related party transaction regulations.

Regulatory Compliance

Tech Mahindra confirmed that the transaction complies with all applicable regulations. The company clarified that this was not a sale transaction, as Tech Mahindra did not receive any consideration directly. Instead, MEI received the share application money of ₹1.65 crores from MKT for the equity allotment.

The transaction does not fall within the purview of related party transactions and is not structured as a slump sale or part of any scheme of arrangement. The cessation represents a strategic restructuring where the educational subsidiary transitions from being a wholly-owned entity to an independent institution under charitable trust management.

Tech Mahindra has announced the incorporation of a new step-down subsidiary in Uganda, expanding its operational footprint in the African market as part of its strategic growth initiative. The company received intimation on December 22, 2025, at 9:11 p.m. (IST) that the certificate of incorporation had been issued by the Office of the Registrar of Companies in Uganda.

Subsidiary Structure and Ownership

The newly incorporated entity, Yabx Technologies Uganda Limited (Yabx Uganda), has been established through a multi-tier subsidiary structure. Yabx Technologies (Netherlands) B.V. holds 100% shareholding in the Uganda entity, while the Netherlands company itself is a wholly-owned subsidiary of Comviva Technologies Limited, which is a subsidiary of Tech Mahindra.

Business Objectives and Market Focus

Yabx Uganda has been incorporated with the primary objective of providing software and analytics platform services to clients in Uganda. The business model aligns with Tech Mahindra's main line of operations in the Information Technology sector. The subsidiary will specifically target banks, micro-financial institutions, and other lending organizations as its prospective client base.

Regulatory Compliance and Disclosure

Tech Mahindra has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The incorporation does not fall within the purview of Related Party Transactions for the parent company, as confirmed in the regulatory filing.

Strategic Implications

The establishment of Yabx Uganda represents Tech Mahindra's continued expansion strategy in emerging markets. As a newly incorporated entity, Yabx Uganda has not yet commenced business operations, and therefore no turnover figures are applicable at this stage. The subsidiary's focus on software and analytics platforms positions it to serve the digital transformation needs of Uganda's financial services sector.

The incorporation strengthens Tech Mahindra's presence in the African continent through its subsidiary network, enabling the company to provide localized technology solutions while maintaining its global service delivery capabilities.