|
| Tech Mahindra offer may not get full subscription: analysts |
| Press Trust of India / Mumbai Jun 11, 2009, 18:59 IST |
|
Tech Mahindra's open offer for acquiring a controlling stake in Satyam Computer, which begins tomorrow, may not be fully subscribed as shareholders will get a better price in the market with the shares of the tainted IT firm soaring over 33 per cent in the past three days.
The open offer price of Rs 58 a share by Tech Mahindra for acquiring a controlling stake in Satyam is far below the today's market price of Rs 80 on the Bombay Stock Exchange.
With Satyam hitting the upper circuit for three straight trading sessions, marketmen feel Satyam shareholders may prefer not to tender their shares under the open offer as they would get better valuations in the open market.
"The open offer would not be fully subscribed as shareholders are getting better price in the market," Unicon Financial Intermediaries CEO G Nagpal said.
Tech Mahindra's Rs 1,154.66 crore open offer, which begins tomorrow, would close on July 1, 2009.
However, analysts believe that even if under-subscribed, Tech Mahindra is unlikely to revise the offer price or make a preferential issue to hike its holding in Satyam.
"It is doubtful that the shareholders would tender their shares at this rate as the market is currently giving better returns than the price offered by Tech Mahindra. But shareholders should not expect any revision in the offer price," SMC Global Vice-President Rajesh Jain said.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
