TCS to Acquire Darshita Southern India Happy Homes for ₹2,250 Crore

Tata Consultancy Services (TCS) has signed 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 deal. The acquisition includes land and a building, which TCS plans to use as a delivery centre, according to a regulatory filing.

The agreement includes a call option that allows TCS to acquire full ownership of the entity after two years. This structure provides flexibility while ensuring control over the property for future operations.

Darshita Southern India Happy Homes was incorporated in September 2004 and is engaged in developing commercial properties for lease to industrial clients. Since the property is still under development, the company has not generated revenue in the past three years.

TCS’s acquisition is part of its efforts to expand operational infrastructure in key locations. Bengaluru, a major IT hub, remains an important location for technology firms. Setting up a new delivery centre in the city is expected to strengthen TCS’s service network and support business expansion.

IT companies have been increasing their investments in commercial real estate as they look to secure dedicated office spaces rather than relying on long-term leases. While TCS has historically leased office spaces and built its own campuses, this move indicates a shift toward direct ownership. Owning property provides long-term cost benefits and greater control over operational planning.

The acquisition reflects the growing demand for commercial real estate in India’s technology sector. With increasing digitization and global demand for IT services, firms continue to invest in physical infrastructure to accommodate business growth. Bengaluru remains a preferred destination for IT companies due to its well-established ecosystem, availability of skilled professionals, and supporting infrastructure.

TCS has not disclosed the expected timeline for making the delivery centre operational. However, the acquisition suggests a long-term investment in expanding its service capabilities. The company’s decision to acquire rather than lease aligns with its business strategy and future growth plans.

Over the years, TCS has been expanding its delivery network in India and globally to meet growing client demands. This acquisition marks another step in strengthening its presence and enhancing its ability to serve customers from a strategic location.

Image source- rediff.com