Tech Mahindra on slippery ground post acquisition of European IT firm CTC

Shares of Tech Mahindra slipped 2 per cent to Rs 1,686.35 on the BSE in Tuesday’s intra-day trade after the company announced acquisition of 100 per cent stake in Europe-based Com Tec Co IT (CTC) and 25 per cent stake in two insurtech platforms for a total of EUR 330 million (about Rs 2,800 crore).

Tech Mahindra informed the stock exchanges on Monday after market hours that it has approved the proposal to acquire 100 per cent stake in CTC for €310 million (3.8x price to CY21 sales), out of which €210 million will be paid upfront and rest