C.P. Gurnani, CEO, MD, Tech Mahindra
Tech Mahindra Limited is an Indian multinational technology company, providing information technology (IT) and business process outsourcing (BPO) services. A subsidiary of the Mahindra Group, the company is headquartered in Pune and has its registered office in Mumbai. As of April 2020, Tech Mahindra is a US$5.2 billion company with 125,236 employees across 90 countries.
The company was ranked #5 in India's IT firms and overall #47 in Fortune India 500 list for 2019. On 25 June 2013, Tech Mahindra announced the completion of a merger with Mahindra Satyam. Tech Mahindra has 973 active clients as of April 2020. The company started joint venture with British Telecom in 1986 as a technology outsourcing firm. British Telecominitially had around 30 percent stake in the Tech Mahindra company. In December 2010, British Telecom sold 5.5 per cent of its stake in Tech Mahindra to Mahindra & Mahindra for Rs 451 crore.
In August 2012, British Telecom sold 14.1 per cent of its stake to institutional investors for about Rs 1,395 crore. In December 2012, British Telecom sold its remaining 9.1 per cent (11.6 million shares) shareholding to institutional investors for a total gross cash proceeds of Rs 1,011.4 crores. This sale marked the exit of British Telecom from Tech Mahindra.
After the Satyam scandal of 200809 Tech Mahindra bid for Satyam Computer Services, and emerged as a top bidder with an offer of Rs 58.90 a share for a 31 percent stake in the company, beating a strong rival Larsen & Toubro. After evaluating the bids, the government-appointed board of Satyam Computer announced on 13 April 2009: "its Board of Directors has selected Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest bidder to acquire a controlling stake in the Company, subject to the approval of the Hon'ble Company Law Board."
IT services major Tech Mahindra on Wednesday said its subsidiary has divested over 18.5 million shares in Altiostar Networks for USD 45 million (about Rs 331 crore) to Rakuten USA, Inc. ”Tech Mahindra (Americas) Inc – an l00 per cent subsidiary of Tech Mahindra Ltd – divested its holding of 18,518,518 C1 Preferred shares in Altiostar Networks,” Tech Mahindra said in a regulatory filing.
Given that it is a minority investment, there is no contribution to turnover/ revenue/income and net worth by Altiostar Networks, Inc during last financial year, it added. ”The buyer is Rakuten USA, Inc,” the filing said, adding the consideration received from the sale is USD 45 million. Rakuten Mobile and Tech Mahindra have also signed an agreement, where the Indian tech firm will be a preferred partner and provide technologies as well as software capabilities to support the development and deployment of mobile networks for global customers of RCP (Rakuten Communications Platform). Through the agreement, Tech Mahindra will also provide managed IT, security and network services to Rakuten Mobile, a statement said.
There are also plans to designate Tech Mahindra as an official reseller of RCP, it added. ”This first of its kind collaboration with Rakuten Mobile not only strengthens our existing partnership with them but will also enable us to drive innovation in the telecom space, provide enhanced customer experience and lead the transformation in mobile network technology from the forefront,” Tech Mahindra Managing Director and CEO C P Gurnani said. Mickey Mikitani, Chairman, President and CEO of Rakuten Inc, said that with a common vision for digital transformation of the telecommunications industry, the company is very excited about the potential of the partnership with Tech Mahindra in bringing more agile, responsive and efficient services to customers around the world.