Tech Mahindra sells prime land in Hyderabad to Mahindra University for Rs 535 crore

Tech Mahindra Ltd. on Tuesday announced the sale of a large plot of land in Hyderabad to Mahindra University. The transaction, valued at Rs 535 crore, represents a significant change in the company’s asset portfolio but will not have any impact on ongoing operations.

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

The University is a major institution established under the Private Universities Establishment and Regulation Act in the State of Telangana. Mahindra University, which operates on these premises and buildings, is sponsored by Mahindra Educational Institutions, a wholly owned subsidiary of Tech Mahindra.

The sale is expected to promote further growth of the university as an autonomous institution and strengthen its capacity to contribute to the progress of society. The transaction will be done in cash, with the total amount of Rs 535 crore to be paid in instalments over a period of four years, it said.

This amount is exclusive of taxes, stamp duties, registration fees, exchange fees and other applicable charges. Tech Mahindra will receive interest at the rate of 8.20% per annum on the outstanding amount during this term.