Tech Mahindra on Tuesday (March 17) said its wholly-owned subsidiary, Tech Mahindra London Limited (TMLL), has entered into and executed a Share Sale and Purchase Agreement with Midad Company Ltd for the acquisition of 20% equity shares in Tech Mahindra Arabia Ltda subsidiary of the company.
According to the exchange filing, the transaction follows the exercise of a put option by Midad under the shareholders’ agreement.
“Consequent to completion of the transaction, the company, along with TMLL, will hold 100% shareholding in Tech Mahindra Arabia Limited,” the filing said.
The acquisition will be carried out for SAR 83.7 million (around ₹206.2 crore) through cash consideration. TMLL will acquire 200 equity shares of 1,000 SAR each, representing 20% of the issued share capital of the Saudi-based subsidiary.
The deal is expected to be completed on or before July 15, 2026, subject to regulatory approval from the General Authority for Competition in the Kingdom of Saudi Arabia.
Headquartered in the Kingdom of Saudi Arabia, Tech Mahindra Arabia provides digital system integration and consulting services for the energy and utilities, banking, and telecom sectors in the country.
The company was incorporated in 2015 and has recorded steady revenue in recent years. For FY2024–25, the subsidiary reported turnover of SAR 181.56 million (around ₹447.3 crore), compared with SAR 158.49 million (around ₹390.5 crore) in FY2023–24 and SAR 161.34 million (around ₹397.5 crore) in FY2022–23.
As of March 31, 2025, Tech Mahindra Arabia had turnover of SAR 181.6 million (around ₹447.4 crore) and net worth of SAR 86.57 million (around ₹213.2 crore), according to the filing.
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Tech Mahindra said the deal falls within the ambit of related party transactions under SEBI Listing Regulations, as TMLL and Tech Mahindra Arabia are subsidiaries of the company and Midad is a related party of Tech Mahindra Arabia.
However, the company clarified that the transaction is being carried out on an arm’s length basis, and none of the promoter or promoter group entities have any interest in the transaction, except to the extent of the company’s shareholding in the entities involved.
Shares of Tech Mahindra ended marginally lower on Tuesday, March 17, by 0.17% at ₹1,341.80 on the NSE.
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