Satyam pares early morning gain; settles 3% up on BSE

Shares of Satyam Computer today settled higher by three per cent on the BSE after paring most of the handsome gains it made after Tech Mahindra outbid others to acquire 31 per cent in the beleaguered IT firm.

Shares of Satyam settled at Rs 48.85, up 3.61 per cent over its previous close on the BSE. In the intra-day trade the scrip had surged 16.43 per cent to Rs 54.90.
  
The Satyam board today named Tech Mahindra as the top bidder with an offer of Rs 58 a share, aggregating to Rs 1,757 crore, for a 31 per cent stake in the firm.
  
The scrip has been on an upswing since March 31 and has surged over 27 per cent in the past seven trading sessions.
  
According to analysts the stake sale would restore investor confidence in the IT firm, but before that market would wait for a clarity about the acquisition deal.

Ever since the disclosure of the multi-crore rupees fraud by Satyam's Founder Ramalinga Raju on January 7, the Hyderabad -based company's market cap has plunged by Rs 8,777 crore. At the end of trade today, Satyam was valued at Rs 3,292 crore.

Tech Mahindra, through a unit Venturbay Consultants Pvt Ltd, would acquire the stake in an all-cash deal, followed by an open offer for a 20 per cent stake for management control.
  
On the NSE the scrip rose 3.17 per cent to a end the day at Rs 48.75. Over 17 crore shares traded on the bourses.
  
Meanwhile, the Bombay Stock Exchange benchmark Sensex today surged by 163.36 points at 10,967.22.