Tech Mahindra To Sell Prime Hyderabad Land To Mahindra University For Rs 535 Crore

Tech Mahindra Ltd. announced on Tuesday the sale of substantial property in Hyderabad to Mahindra University. This transaction, valued at Rs 535 crore, represents a significant shift in the company’s asset portfolio but will have no impact on its ongoing business operations.

At a meeting, the sub-committee of the board of directors approved the sale of approximately 103 acres of land and buildings with a built-up area of 12.6 lakh square feet. This property in Bahadurpally village under Dundigal Gandimaisamma mandal has been the home of Mahindra University since its inception, according to an exchange filing.

The university is a prominent institution established under the Telangana State Private Universities (Establishment and Regulation) Act. Mahindra University, which has been operating on this land and in these buildings, is sponsored by Mahindra Educational Institutions, a wholly owned subsidiary of Tech Mahindra.

The sale is designed to facilitate the university's continued growth as an autonomous institution, reinforcing its capacity to contribute to societal progress. The transaction will be conducted in cash, with a total consideration of Rs 535 crore to be received in installments over a period of four years, it said.

This amount is exclusive of taxes, stamp duty, registration fees, conversion charges, and any other applicable costs. Tech Mahindra will earn interest at a rate of 8.20% per year on the outstanding balance throughout this period.

Shares of Tech Mahindra closed 2.11% higher at Rs 1,628.30 apiece on the BSE, compared to a 0.47% advance in the benchmark Sensex.