Tech Mahindra CEO sells 78% holding

Tech Mahindra CEO sells 78% holding

Mumbai: Sanjay Kalra, the chief executive officer of Tech Mahindra Ltd., has sold 4.8 lakh shares or nearly 78.56% of his holding in the company, for Rs44 crore in six separate transactions over three days.

The shares were sold on Bombay Stock Exchange, or BSE, and National Stock Exchange, or NSE, last Friday, as well as on Monday and Tuesday of this week as per disclosures made to the BSE on 9 March.

Post the sale, Kalra’s holding in the company has come down from 0.49%, or 611,000 shares, to 0.11%, or 131,000 shares.

A company spokesperson said that the sale proceeds will be used to buy new stock options in the company.

Earlier, on 2 March, company’s managing director Vineet Nayyar had pared his stake in the company from 0.82%, or 997,000 shares, to 0.53%, or 647,000 shares by donating 350,000 shares, worth Rs31.78 crore at the market price then, to Essel Social Welfare Foundation, a non-governmental organization run by Nayyar’s wife Reva Nayyar.

Analysts said that senior executives in other firms have also been booking profits in a similar fashion.

“I don’t see anything out of the ordinary with this particular transaction, especially as there have been similar sales with other companies as well in the recent past," said an analyst at a Mumbai based brokerage who tracks Tech Mahindra, who requested not to be named as he was not an authorized spokesperson for the brokerage.

The analyst added that the shares sold by Kalra are most likely earned through the employee stock option plan.

Shares of the company gained 0.32% on Thursday to close at Rs903.95 on the BSE while the benchmark Sensex rose 0.41% to close at 17167.96 points.