Mahindra Satyam remains cheerful
Mahindra Satyam, which continues to trade on the BSE as Satyam Computers is doing well today also, up over 2% at Rs.113.45, closer to its intra day high at Rs.114. Interestingly, exactly a year ago, 12th June’12, the stock had hit a new 52-week low at Rs.75.
The stock is in the green after the Andhra Pradesh Govt approved the much awaited merger between Mahindra Satyam and Tech Mahindra. The merger process is expected to be completed in two months time. The swap ratio is two equity shares of Rs 10 each of Tech Mahindra for every 17 shares of Rs 2 each of Mahindra Satyam.
This apart it is also good news that the Court has dismissed the over 35 petitions against the company, including that by Ramalinga Raju and IL&FS, who sought a refund of Rs.1230 crore, which they claim having lent to the company before its collapse in 2009.
The merger is expected to make the merged into the fifth largest IT company in India and its operational synergies are expected to double its revenue about Rs.29,000 crore by FY15.