Tech Mahindra

Tech Mahindra
Public
Traded as BSE: 532755
NSE: TECHM
Industry IT services, IT consulting
Founded 1986
Headquarters Pune, India[1]
Area served
 Worldwide
Key people
 Anand Mahindra (Chairman & Founder)
Vineet Nayyar (VC)
CP Gurnani (CEO & MD)
Services IT, Business Consulting and Outsourcing
Revenue Increase $3.68 billion (March 2015)[2]
Increase $675 million (March 2015)[2]
Number of employees
 105,235 (September 2015)[3]
Parent Mahindra Group
Website www.techmahindra.com

Tech Mahindra is a USD 3.9 billion IT services company with headquarters in Pune,India.[3] Tech Mahindra, on 25 June 2013, announced the completion of a merger with Mahindra Satyam.[4]

Tech Mahindra has operations in more than 51 countries with 40 sales offices and 72 delivery centres. Assessed at SEI CMMi Level 5, its software headcount stood at 72,952, BPO at 22,693 and support at 7,636 at the end of the financial year 2015.[3]

Foundation

Mahindra & Mahindra started a joint venture with British Telecom in 1986 as a technology outsourcing firm. British Telecom initially 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.[5] 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 crore. This sale marked the exit of British Telecom from Tech Mahindra.[6]

Acquisition of Satyam Computer Services Ltd.

After the Satyam scandal of 2008-09 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 per cent stake in the company, beating a strong rival Larsen & Toubro.[7] 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." Through a subsidiary, it has emerged victorious in Satyam sell-off, a company probably two times its size in number of people. This was one of the largest merger deals in India's tech industry.

Merger with Mahindra Satyam

Mahindra Group V-C Anand Mahindra

Tech Mahindra announced its merger with Mahindra Satyam on March 21, 2012, after the board of two companies gave the approval,to build a 2.5-billion $ IT Company in India.[8][9][10] The two firms had received the go-ahead for merger from the Bombay Stock Exchange and the National Stock Exchange.[11] On June 11, 2013, Andhra Pradesh High Court gave its approval for the merger of Mahindra Satyam with Tech Mahindra,after Bombay high court already gave its approval.[12][13][14][15] Vineet Nayyar said that technical approvals from the Registrar of Companies(RoC) in Andhra Pradesh and Maharashtra are required which will be done in two to four weeks,and within 8 weeks,new merged entity will be in place,a new organisation chart would also come into force led by Anand Mahindra as Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnani as the CEO and Managing Director.[16][17][18] On June 25, 2013,Tech Mahindra announced completion of Mahindra Satyam's merger with itself to create nation's fifth largest software services company with a turnover of USD 2.7 billion.[19][20] Tech Mahindra got the approval from the registrar of companies for the merger late in the night at 11:45 pm on June 24, 2013. July 5, 2013 has been determined as record date on which the Satyam Computer Services ('Mahindra Satyam') shares will be swapped for Tech Mahindra shares under the approved scheme, which was approved by both the boards.[21] Mahindra Satyam (Satyam Computer Services), was suspended from trading with effect from July 4, 2013, following its merger with Tech Mahindra .[22] Tech Mahindra completed share swap and allocated its shares to the shareholders of Satyam Computer Services on July 12, 2013.[23] The stock exchanges have accorded their approval for trading the new shares effective July 12, 2013. Tech Mahindra posted net profit of Rs 686 crore for the first quarter ended June 30, 2013, up 27% compared to the corresponding quarter last year.[24][25][26]

History

Tech Mahindra offices

Tech Mahindra has offices in more than 50 countries.[35][36][37]

See also

References

  1. ↑ Satyam is history: Mahindra Group merges Satyam with Tech Mahindra
  2. 1 2 http://www.techmahindra.com/media/press_releases/Tech-Mahindra-FY15-revenues-at-22621-crore-up-20-YoY.aspx. Missing or empty |title= (help)
  3. 1 2 3 http://www.techmahindra.com/media/press_releases/Tech-Mahindra-FY15-revenues-at-22621-crore-up-20-YoY.aspx
  4. ↑ "1:8.5 swap for Tech Mahindra, Mahindra Satyam merger". The Hindu (Chennai, India). June 25, 2013.
  5. ↑ "BT Group to exit from Tech Mahindra, directors resign". Economic Times. 24 December 2011. Retrieved 4 July 2015.
  6. ↑ "BT exits Tech Mahindra". The Hindu. 12 December 2012. Retrieved 4 July 2015.
  7. ↑ Tech Mahindra wins Satyam bid
  8. ↑ "Mahindra Satyam's merger with Tech Mahindra next year". The Times Of India. 10 November 2011.
  9. ↑ Rising wages can harm Indian IT companies: Vineet Nayyar, Vice-Chairman, Tech Mahindra
  10. ↑ /Tech Mahindra, Satyam get nod to merge
  11. ↑ Mahindra Satyam-TechM to take 150 top leaders to Bangkok
  12. ↑ "Mahindra Satyam, Tech Mahindra merger gets AP High Court's nod — The Times of India". The Times Of India.
  13. ↑ "Andhra Pradesh High Court clears merger of Mahindra Satyam with Tech Mahindra". The Times Of India. June 11, 2013.
  14. ↑ "Mahindra Satyam waits for Court order for merger". The Hindu (Chennai, India). May 17, 2013.
  15. ↑ http://www.deccanchronicle.com/130612/news-businesstech/article/decks-cleared-end-satyam
  16. ↑ http://indiatoday.intoday.in/story/m-satyam-tech-mahindra-hope-to-merge-in-four-weeks/1/279629.html
  17. ↑ http://www.moneycontrol.com/news/business/will-complete-tech-mah-satyam-merger8-weeks-nayyar-_896218.html
  18. ↑ "MSat-Tech Mahindra merger gets court nod". The Hindu (Chennai, India). June 11, 2013.
  19. ↑ http://zeenews.india.com/business/news/companies/mahindra-satyam-merges-with-tech-mahindra_78656.html
  20. ↑ http://www.moneycontrol.com/news/business/tech-mahindra-satyam-computer-complete-merger_905059.html
  21. ↑ http://www.deccanchronicle.com/130626/news-businesstech/article/satyam-history-mahindra-group-merges-satyam-tech-mahindra
  22. ↑ http://www.moneycontrol.com/news/market-news/tradingmahindra-satyam-to-be-suspendedjuly-4_908200.html
  23. ↑ http://www.business-standard.com/article/companies/satyam-is-no-more-to-live-on-as-part-of-tech-mahindra-113071400336_1.html
  24. ↑ http://www.rediff.com/business/report/tech-mahindra-completes-share-swap-issued-capital-goes-up/20130712.htm
  25. ↑ "Tech Mahindra completes share swap — The Times of India". The Times Of India.
  26. ↑ http://www.business-standard.com/article/companies/tech-mahindra-q1-net-up-27-y-o-y-113081200500_1.html
  27. ↑ Daniel Thomas (29 Aug 2012). "BT set to reduce stake in Tech Mahindra". Archived from the original on 2 Oct 2012. BT founded Tech Mahindra as a joint venture with Mahindra & Mahindra, the Indian vehicle group, in 1986.
  28. ↑ http://www.techmahindra.com/company/corporate_history.aspx
  29. ↑ "Tech Mahindra acquires Sweden-based Type Approval Lab". The Economics Times. Retrieved 2012-04-24.
  30. ↑ http://www.business-standard.com/article/companies/tech-mahindra-goes-for-growth-by-acquisition-113101500020_1.html
  31. ↑ http://articles.economictimes.indiatimes.com/2015-01-09/news/57883595_1_tech-mahindra-lightbridge-communications-gurnani
  32. ↑ http://www.techmahindra.com/media/press_releases/Tech_Mahindra_Augments_Its_Core_Banking_Expertise.aspx
  33. ↑ http://articles.economictimes.indiatimes.com/2015-12-14/news/69033382_1_tech-mahindra-debt-restructuring-design
  34. ↑ http://www.business-standard.com/article/companies/tech-mahindra-aims-10-productivity-improvement-with-new-automation-platform-115122200882_1.html
  35. ↑ "Tech Mahindra > Location Details". Retrieved 2012-10-01.
  36. ↑ "Tech Mahindra". Retrieved 2012-10-01.
  37. ↑ "Contact Details & offices are in Asia, Africa, Americas, Europe & Australia". Tech Mahindra. Retrieved 2012-10-01.
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