LIC picks up over 5% in Tech Mahindra; shares plunge by 4%

The country's largest insurer LIC is understood to have picked up more than five per cent stake in IT company Tech Mahindra.

The shares of Tech Mahindra were sold by US-based communications firm AT&T, which is one of the major clients of the IT firm. US-based firm sold its stake nearly a month after it had bought 8.07 per cent stake in the Indian IT firm.

LIC would have picked up a little over 5 per cent from stock exchanges, sources said.

However, no financial details of the deal were ascertained from any of the companies.
    
Following the reports of the stake sale, shares of Tech Mahindra dropped by 4.3 per cent and were trading at Rs 770.05 in the afternoon trade on the Bombay Stock Exchange.
    
It is to be noted that AT&T had bought 8.07 per cent stake in Tech Mahindra for USD 34.5 million from Mahindra BT Investment Co last month.
    
When contacted Tech Mahindra did not comment on the move.
    
Tech Mahindra, which employs 30,000 people, is a leading provider of solutions and services to the telecommunications industry. It is majority owned by Mahindra & Mahindra Ltd, in partnership with British Telecommunications Plc.
    
As on December 31, 2009, Mahindra and Mahindra, the utility vehicle and tractor maker, has 44 per cent stake in Tech Mahindra, while UK's telecommunications company BT has 38 per cent stake.