Tech Mahindra shares gained over two percent in trade on August 20 after its management approved the sale of 103-acre land in Hyderabad for a cash consideration of Rs 535 crore.

The IT giant will sell the land and buildings, which have an approximate built-up area of 1.26 million square feet spanning over 17 buildings, to Mahindra University. The land is situated at Bahadurpally village, in Hyderabad.

The total consideration for the land parcel is Rs 535 crore plus taxes, stamp duty, registration fees, conversion charges and such other charges wherever applicable. This will be received in
tranches, over a period of four years along with interest at 8.2 percent per annum, receivable during the said period

According to an exchange filing, the objective of the sale is to set up Mahindra University as an
“autonomous institution that focuses on the betterment of society, one which can continue to grow independently.”

At 2.30 pm, TechM shares were quoting Rs 1,628.85 apiece on the NSE, higher by 2.14 percent compared to the previous session’s closing price.

Mahindra University is a university established under the Telangana State Private Universities (Establishment and Regulation) Act, 2018 on the land and buildings owned by the Company. Mahindra Educational Institutions is the sponsoring body of Mahindra University, according to a filing with the bourses.

“As no business operations of the Company are carried out on the said land and building being sold, the said sale will not have any impact on the business operations of the Company,” Tech Mahindra added.

Over the past 12 months, Tech Mahindra shares have risen around 34 percent as against a 26 percent rise in the Nifty 50 index during the same time period.