The information and technology heavyweight Tech Mahindra shares have cracked almost 6.5 per in the last two days on the BSE, since the company announced acquisitions in two European firms. The stock on Wednesday declined over 2 per cent to Rs 1,628 per share on the BSE intraday trade. 

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Tech Mahindra on Monday announced the acquisition of a 100 per cent stake in Europe-based Com Tec Co IT (CTC) and a 25 per cent stake in two insurtech platforms for a total of EUR 330 million (about Rs 2,800 crore), the company’s press statement said in filing on the exchanges. 

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According to Tech Mahindra, the acquisitions will strengthen its digital engineering and insurance technology businesses. 

The CTC acquisition is the second-largest acquisition that the company has made after scam-hit Satyam in April 2010. CTC is an IT solution and service provider, serving the insurance and financial services industries with development centres in Latvia and Belarus. 

“The company is investing in strengthening capabilities to support insurers in accelerating their transition to cloud-based platforms and provide end-to-end engineering with a strong European nearshore presence, said Vivek Agarwal, President - BFSI, HLS, Tech Mahindra.  

The insurance industry is currently undergoing a significant transformation, which is driven by new emerging business models, that are powered by disruptive digital technologies, Agarwal also said. 

The stock in the last one year has gained around 65 per cent against around 23 per cent rise in the S&P BSE Sensex, while it surged over 50 per cent in the 6 months versus 15 per cent rise in the Sensex. 

The counter at around 12:46 pm, is down almost 1 per cent to Rs 1647.2 per share on the BSE, as compared to 1.14 per cent fall in the S&P BSE Sensex.