Founded in 1986, Tech Mahindra is one of the leading multinational tech companies born in India. It is a subsidiary of the Mahindra Group with its headquarters based in Pune, Maharashtra, India. Anand Mahindra is the founder of the company and he is also the present Chairman of the company. Currently, C.P. Gurnani is both the CEO and MD of Tech Mahindra.
Tech Mahindra is famous for providing IT and Business Process Outsourcing (BPO) services. It is a publicly-traded company and as of April 2020, its valuation is $5.2 billion. Tech Mahindra is a multinational company with customers across 90 countries. It has more than 125,000 employees and ranks fifth in the list of India’s top IT firms.
Early Days Of The Company
The origin of the Company dates back to the mid-1980s when Mahindra & Mahindra started a joint venture with British Telecom. This partnership was to start a technology outsourcing firm where British Telecom initially has a 30% stake in the Tech Mahindra company. In 2010, British Telecom decided to sell 5.5% of its stake in Tech Mahindra to Mahindra & Mahindra. The deal was closed for Rs 451 crore. After two years, British Telecom again sold 14.1% of its stake to the institutional investors for Rs 1,395 crore approximately. By the end of 2021, British Telecom was out of the joint venture as it sold the rest of its stake of Tech Mahindra to institutional investors.
In 2009, Satyam Computer Services faced a big scandal after which Tech Mahindra decided to bid for the company. It became one of the strong bidders as it beat Larsen & Toubro and emerged out with a 31% stake in the company. After the bidding, the Board of Directors of Satyam Computer was decided by Venturbay Consultants Private Limited. This company was a subsidiary of Tech Mahindra and it became the company with a controlling stake in Satyam Computer.
Tech Mahindra and Mahindra Satyam
In 2012, Tech Mahindra merged with Mahindra Satyam and the merger created an IT company worth $2.5 billion. Both the first received a green signal from the Bombay Stock Exchange and National Stock Exchange for the merger and after a year Andhra Pradesh High Court also approved. There were several technical approvals to be taken for this merger which were all completed in 2013. After the formation of this new organization, the executive team for the company was formed. Anand Mahindra led the company as its Chairman followed by Vineet Nayyar as Vice Chairman, and C.P. Gurnani as the CEO and Managing Director.
The merger was officially completed in June 2013 and it made Company the fifth largest software services company in India. After the merger took place, the company received approval for a scheme under which the shares of Mahindra Satyam could be swapped for Tech Mahindra. The share swapping was given a time limit of a month as from July, trading of Mahindra Satyam was suspended and the shareholders of this company were allocated shares of Tech Mahindra. This merger witnessed a high increase in profit (up by 27% in the first quarter as compared to that of the previous year).
Recent Days
In 2014, Tech Mahindra made a big acquisition as it bought Lightbridge Communication Corporation, the largest independent multinational telecom service company. Next year it acquired a Swiss IT firm called SOFGEN Holdings. It also purchased a controlling stake in an Italian automotive brand called Pininfarina S.p.A. In 2016, the company revealed its plan to acquire Target Group as it would boost its business in the banking sector.
After the merger of Tech Mahindra and Mahindra Satyam, the company focused on strengthening its international market, thus collaborating with various foreign brands. It also started a partnership with Huawei to sell its products and services across 44 countries. Earlier this year, Company started a joint venture with ThoughtSpot, a US-based analytics company.
About The Founder
Anand Gopal Mahindra is an Indian billionaire who was born into a family of industrialists. He completed his education at Harvard University followed by Harvard Business School. After graduating, he joined Mahindra Ugine Steel Company Ltd and eventually became the Chairman of Mahindra Group in 2016. He is a recipient of the prestigious Padma Bhushan Award.
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