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Tech Mahindra unit to acquire 13.8% stake in AustinGiS Inc

Capital Market 

Tech Mahindra (Americas) Inc., a wholly-owned-subsidiary of Tech Mahindra, will acquire 13.8% stake of AustinGiS, an IT services provider, for a total cash consideration of $1.25 million.

AustinGiS is an 5G services and IoT IaaS provider incorporated in 2021, with a projected revenue of $28 million in CY2021. Since this is a newly incorporated entity, provision of historical financial information is not applicable.

The investment will help Tech Mahindra develop new offerings in its IoT/5G capabilities by opening up a strong ecosystem of partners with specialization in 5G/IoT technology. The transaction is expected to close by 15 September 2021.

On a consolidated basis, Tech Mahindra reported a 30.77% jump in net profit to Rs 1,365.70 crore in Q1 June 2021 (Q1 FY22) over Rs 1,044.30 crore in Q4 March 2021 (Q4 FY21). Revenue from operations grew 4.80% to Rs 10,197.60 crore in Q1 FY22 from Rs 9,729.90 crore in Q4 FY21.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services.

Shares of Tech Mahindra lost 0.20% to Rs 1,446.55 on Friday, 27 August 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, August 28 2021. 12:00 IST