Tata Consultancy Services (TCS) has agreed to acquire two wholly owned subsidiaries of Tata Realty and Infrastructure Limited—TRIL Bengaluru Real Estate Five Limited and TRIL Bengaluru Real Estate Six Limited—for ₹1,625 crore.

The acquisition, comprising optionally redeemable convertible debentures and 100% equity shares, will aid TCS’s delivery centre expansion. The entities, incorporated in FY24, hold land intended for future development.

The transaction, conducted on an arm’s-length basis, does not require additional governmental approvals and is expected to conclude within a year, the company said,

The largest IT services firm in India also reported its Q3 results on Thursday. The company posted a revenue of ₹63,973 crore for the December quarter, marking a 0.4% decline from the previous quarter and falling short of market expectations.

In US dollar terms, revenue dropped by 1.7%. However, net profit rose by 4% to ₹12,380 crore, surpassing estimates.

Also read: TCS Q3 Results: US Dollar revenue declines more than estimates; deal wins back above $10 billion

TCS shares closed 1.5% lower at ₹4,044, continuing their underperformance against peers. TCS is now trading at a discount to Infosys based on price-to-earnings multiples, indicating weaker investor sentiment.