Tech Mahindra shares hit 52-week high on nod to sale of 103 acre land to Mahindra University

Shares of IT major Tech Mahindra hit their 52-week high on Tuesday after the management cleared the sale of 103-acre land in Hyderabad for a cash consideration of Rs 535 crore.

Tech Mahindra stock gained 2.5% intraday to a high of Rs 1634.25 against the previous close of Rs 1594.65 on BSE. Market cap of the IT firm climbed to Rs 1.59 lakh crore.Later, the stock ended 2.11% higher at Rs 1628.30 on BSE. 

Tech Mahindra 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 transaction for the land parcel is worth Rs 535 crore plus taxes, stamp duty, registration fees, conversion charges and such other charges wherever applicable. The amount 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."