Tech Mahindra on Tuesday announced that the company board has approved the sale of land measuring approximately 103 acres and 17 buildings admeasuring built-up area of around 1,261,149 sqft in Hyderabad, Telangana to Mahindra University, for a cash consideration of Rs 535 crore. Mahindra University is a university established under the Telangana State Private Universities (Establishment and Regulation) Act, 2018. Mahindra Educational Institutions, a wholly-owned subsidiary of the company is the sponsoring body of Mahindra University.
“A sub-committee of the Board of Directors at its meeting held today, 20th August, 2024 approved sale of land admeasuring approx 103 acres and buildings admeasuring built-up area of approx 1,261,149 sqft situated at Bahadurpally village, Dundigal Gandimaisamma mandal (earlier Quthbullahpur mandal), Medchal-Malkajgiri district (earlier Ranga Reddy district), Hyderabad, Telangana (Property) to Mahindra University, subject to requisite regulatory approvals,” the company said in a regulatory filing.
Tech Mahindra said that the objective of the sale is to set up Mahindra University as an autonomous institution that focuses on the betterment of society, one which can continue to grow independently.
The total consideration for the land parcel, Tech Mahindra added, is Rs 535 crore plus taxes, stamp duty, registration fees, conversion charges and such other charges wherever applicable. This, it said, will be received in tranches, over a period of four years along with interest @ 8.20 per cent per annum, receivable during the said period. This is expected to be completed on or before September 20, 2024.
“As no business operations of the company are carried out on the said land and building being sold, the said sale will not have any impact on the business operations of the Company,” the IT major said.
Earlier in July, Tech Mahindra recorded its fiscal first quarter profit at Rs 851.50 crore, up 23 per cent in comparison to Rs 692.50 crore posted during the corresponding quarter of FY24. It posted revenue from operations at Rs 13,005.50 crore, down 1.2 per cent as against Rs 13159.00 crore during the same period of previous fiscal year. The company EBITDA stood at Rs 1102.3 crore.