Mahindra Satyam, Tech Mahindra in demand after amalgamation

Tech Mahindra rose 3.07% and Mahindra Satyam gained 3.75%.

The BSE Sensex was up 44.67 points, or 0.24% at 18,673.82.

The announcement was made during trading hours on Tuesday, 25 June 2013. Shares of Tech Mahindra rose 1.02% and Mahindra Satyam gained 1.09% on that day.

The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said.

Tech Mahindra acquired erstwhile fraud-hit Satyam Computer at an auction overseen by government-appointed directors in April 2009. Satyam Computer was renamed Mahindra Satyam.

Mahindra Satyam and Tech Mahindra announced their intention to combine on 21 March 2012, but the merger proposal was stuck in the Andhra Pradesh High Court, which clubbed it with two separate petitions--one challenging the merger swap ratio of two shares of Tech Mahindra for every 17 Mahindra Satyam shares, and another filed by purported creditors claiming Rs 1230 crore they said they lent to Satyam Computer. The Andhra Pradesh High Court approved the merger on 11 June 2013.

Even as the amalgamation awaited final court approval, the two companies have already been operating as a single entity business-wise.

Powered by Capital Market - Live News