On October 23, Tech Mahindra (Americas) made an announcement regarding its decision to divest its 30 percent ownership stake in Avion Networks Inc. The transaction, valued at $50,000, will be completed by or before October 31, 2023, and the purchaser is Kanchana Raman, the promoter of Avion Networks Inc.
Tech Mahindra (America) Inc (TMA), a wholly owned subsidiary of Tech Mahindra Limited, is the current holder of a 30 percent share capital in Avion Networks Inc. It’s important to note that the buyers have no affiliations with the promoter or promoter group of Tech Mahindra Limited.
The rationale behind the divestment of its stake in Avion Networks is explained by the information technology and software services provider as follows: “Since this entity did not contribute to the consolidated turnover or net worth of the company, it was decided to divest Tech Mahindra’s stake in Avion Networks to optimize compliance costs and mitigate associated risks.”
In 2015, Tech Mahindra had formed a joint venture with Avion Systems, a global telecom technology firm, to provide services related to network design and software engineering. These services were aimed at the deployment and management of mobile networks and the transformation of these networks into cloud-enabled, virtual, and open systems software-driven networks.