MFs dominate Tech Mahindra share buyers

 Domestic mutual funds, including Reliance, SBI and ICICI Prudential MFs, purchased shares worth an estimated Rs 1,000 crore in Tech Mahindra — outpacing foreign investors as well as Indian insurers in buying shares put on block by British Telecom, a promoter in the IT firm.

The UK-based global telecom giant BT group on Thursday sold shares worth Rs 1,395 crore, accounting for a 14.1 per cent stake in Tech Mahindra, while pruning its holding in the Indian IT firm to 9.1 per cent.

BT said that shares were sold to institutional investors, but did not disclose the name of the buyers.

However, the share dealing data with the stock exchanges show that the shares were acquired by more than 20 investors, which included domestic mutual funds and life insurance companies, as well as foreign investors.

While domestic fund houses acquired shares worth an estimated Rs 1,000 crore, the life insurers bought equity worth less than Rs 100 crore. The foreign investors purchased shares worth close to Rs 300 crore. BT sold a total of 17.9 million shares at an average price of Rs 777.73 per share. Interestingly, most of the life insurance companies purchased the shares at an average price of Rs 775 a piece, lower than some domestic and foreign funds.

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