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Rediff.com  » Business » Tech Mahindra to hold 50.42% in Satyam

Tech Mahindra to hold 50.42% in Satyam

July 09, 2009 16:35 IST
Satyam Computer on Thursday said its new owner Tech Mahindra's stake will go up to 50.42 per cent in the company following a preferential allotment of over 19.86 lakh shares.

In a filing to the Bombay Stock Exchange, Satyam said post-acquisition of additional 19,86,58,498 shares in the subsequent preferential allotment, Tech Mahindra's stake in the company would go up to 50.42 per cent.

Tech Mahindra, which acquired a 31 per cent stake in Satyam Computer for about Rs 1,756 crore (Rs 17.56 billion)  in April, had launched an open offer to buy up to 20 per cent at Rs 58 a share that received poor response from public shareholders.

Only 4,20,915 Satyam shares or 0.04 per cent stake were tendered in the offer as the offer price was 30 per cent below the prevailing market price at that time, thus necessitating the beleaguered IT firm to make a preferential allotment to Tech Mahindra.

Satyam, now rebranded as Mahindra Satyam, had on Wednesday received the Company Law Board's approval for allotment of an additional 19.86 crore shares at Rs 56 a piece on preferential basis, aggregating to Rs 1,112.48 crore, to its new owner.

Shares of Satyam closed at Rs 73, up 3.62 per cent on the Bombay Stock Exchange.

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