Tata Consultancy Services (TCS) has entered into an agreement to acquire a 100% equity stake in Darshita Southern India Happy Homes Pvt Ltd, a Bengaluru-based commercial real estate firm, for ₹2,250 crore in an all-cash transaction. The acquisition includes both land and a building, which TCS plans to convert into a new delivery centre, as stated in a regulatory filing.
The deal also includes a call option, providing TCS the flexibility to acquire full ownership of the company after two years, ensuring control over the property for future use.
Founded in September 2004, Darshita Southern India Happy Homes focuses on developing commercial properties for lease to industrial clients. However, the property in question is still under development and has not generated revenue in the past three years.
This acquisition is part of TCS’s broader strategy to expand its operational infrastructure in key locations. Bengaluru, being a prominent IT hub, is a crucial site for technology firms, and setting up a new delivery centre in the city is expected to strengthen TCS’s service network and support its ongoing business expansion.
The acquisition highlights the growing trend among IT companies to invest in commercial real estate, securing dedicated office spaces instead of relying on long-term leases. While TCS has traditionally leased office spaces and built campuses, this move represents a shift towards direct ownership, offering long-term cost benefits and greater control over operations.
The acquisition also underscores the increasing demand for commercial real estate in India’s technology sector. As digitalization continues to rise and global demand for IT services grows, companies are investing in physical infrastructure to accommodate expansion. Bengaluru remains a preferred destination due to its well-established tech ecosystem, skilled workforce, and robust infrastructure.
While TCS has not disclosed a timeline for when the delivery centre will be operational, the acquisition signals a long-term investment in enhancing its service capabilities. The decision to acquire property rather than lease it aligns with TCS’s strategic goals and future growth plans.
TCS has been actively expanding its delivery network both in India and globally to meet the rising demands of its clients. This latest acquisition further strengthens its presence and positions the company to better serve its customers from a strategically located centre.