Mphasis Ltd witnessed a marginal reduction in institutional holding as Kotak Mahindra Mutual Fund (KMMF) sold 123,216 equity shares in the open market on October 5, 2026. This transaction was disclosed to the stock exchanges under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The disposal represents a small fraction of the mutual fund's total stake, amounting to 0.0645% of the company's total voting capital. Following this sale, KMMF’s aggregate holding in the IT services major stands at 7.237%, down from 7.3015% prior to the transaction.

Transaction Details

The disclosure highlights that the sale was executed through the schemes managed by Kotak Mahindra Asset Management Company Limited. The acquirer does not belong to the promoter or promoter group. The total equity share capital of the target company remained unchanged at 19,08,73,137 equity shares of ₹10 each before and after the sale.

Regulatory Compliance

Kotak Mahindra Mutual Fund filed the necessary disclosures with BSE Limited and National Stock Exchange of India Limited. The compliance officer for Kotak Mahindra Asset Management Company Limited, Jolly Bhatt, signed the submission dated October 7, 2026. The filing confirms that no warrants, convertible securities, or other instruments entitling the holder to receive shares were involved in this specific disposal event.

What the Numbers Show

The data indicates a routine portfolio rebalancing activity rather than a significant exit strategy. With a disposal size of just 0.0645% against a substantial existing holding of over 7.3%, the mutual fund retains a dominant institutional position in the company. The negligible change in percentage ownership suggests that the fund continues to maintain its strategic exposure to the stock despite the minor sell-off.

Mphasis has extended its collaboration with Social Security Scotland, securing a £35.4 million contract to manage and maintain the agency's core benefits management platform.

The agreement ensures continuity of services for approximately 2 million citizens across Scotland, covering benefit applications, eligibility decisions, and payments.

Deal highlights

The following table summarises the key parameters of the partnership expansion:

Partnership expansion

The renewed engagement underscores Mphasis' continued presence in the public sector technology services space. Under this contract, Mphasis will provide support and maintenance for the executive agency's core benefits case management platform. The scope of work focuses on maintaining a stable, resilient, and high-quality service, ensuring uninterrupted access to vital benefits such as disability support and heating assistance.

Ashish Devalekar, Executive Vice President and Head of Europe at Mphasis, stated that the project aligns with the company's broader public sector focus. He emphasized the commitment to maintaining continuity and improving operational efficiency for government organizations running secure digital services.

Social Security Scotland is one of the largest executive agencies of the Scottish Government. Its Social Program Management (SPM) case management system is critical for administering a wide range of social security payments. This agreement helps mitigate risks linked to operational inefficiency and disruption through major incidents.