Tech Mahindra to sell its holding in Avion Networks

On October 23, Tech Mahindra (Americas) declared that it will sell its thirty percent stake in Avion Networks Inc. to the company's promoter, Kanchana Raman, for $50,000. The sale and disposal should be completed by October 31, 2023, at the latest.

Currently, Tech Mahindra Limited's wholly owned subsidiary Tech Mahindra (America) Inc. (TMA) owns thirty percent of Avion Networks Inc.'s shares.

The purchases are unrelated to the promoter or promoter group of Tech Mahindra Limited, the business stated in an exchange filing.

Explaining why it is divesting its stake in Avion Networks, the information technology and software services provider said: “Since there was no contribution in terms of turnover or net worth in the consolidated turnover or net worth of the company from this entity, it was decided to divest Tech Mahindra’s stake in Avion Networks to optimize the compliance cost and risks.”

In order to provide network design and software engineering services for the deployment and management of mobile networks as well as the conversion of these networks into cloud-enabled, virtual, and open systems software-driven networks, Tech Mahindra and the multinational telecom technology company Avion Systems formed a joint venture in 2015.