- By Vaamanaa Sethi
- Tue, 24 Oct 2023 12:59 PM (IST)
- Source:JND
Mahindra Group’s IT arm Tech Mahindra Ltd board has given its approval to divest its 30% stake in Avion Networks for $50,000, the company informed the exchange houses on Monday evening.
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The exchange filing by the company further mentioned that the transaction is expected to be completed on or before October 31. Tech Mahindra Ltd, through a wholly-owned subsidiary Tech Mahindra (America) Inc. (TMA), was holding 30% share capital of Avion Networks Inc.
The IT company opted to divest its stake in Avion Networks since Avion did not make any significant contributions to TMA's turnover or net worth. Avion Networks Inc. is promoted by Ms. Kanchana Raman.
“Since there was no contribution in terms of turnover or net worth in the consolidated turnover or net worth of the company (TMA) from this entity (Avion), it was decided to divest Tech Mahindra’s stake in Avion Networks to optimize the compliance cost and risks," Tech Mahindra said in the regulatory filing.
The IT company further clarified that the buyers are not related to the promoter or Promoter Group of Tech Mahindra Limited and this transaction is not a slump sale.
Tech Mahindra has scheduled a board meeting for October 25 to review the proposal for its interim dividend for the fiscal year FY23-24, as disclosed in a stock filing by the company.
“We would like to inform you that the Board of Directors will also consider a proposal for payment of interim dividend for the financial year 2023-24, at its meeting scheduled on 24th October & 25th October, 2023," the company had said in its stock filing.