SEBI clears Tech Mahindra's open offer for 20 per cent in Satyam
03 Jun 2009
The Securities and Exchange Board of India (SEBI) has cleared Tech Mahindra's pen offer to acquire 20 per cent additional stake in the scam-hit Satyam Computer Services for Rs1,154 crore.
Tech Mahindra, which acquired a 31 per cent stake in Sataym Computer for Rs1,756 crore through an auction-based issue of preferential shares, had, on 22 April, made an open offer to buy an additional 20 per cent shares in Satyam from the investing public.
Tech Mahindra made the acquisition through its acquisition vehicle Venturebay Consultant in an auction conducted by the government-appointed board of scam-hit Satyam.
SEBI, which recieved the mandatory open offer for its consideration on 6 May, issued its 'observations' on May 27, thus clearing the way for the open offer.
Venturebay Consultants made the open offer of Rs58 a share – the same price it offered for the 31 per cent stake - through Kotak Mahindra Capital, its merchant banker for the issue.
The Tech Mahindra stock surged over 6 per cent on the Bombay Stock Exchange today, after the company received SEB's green signal for its open offer for Satyam Computer.
Shares of Tech Mahindra jumped 6.11 per cent to touch a high of Rs593.50 on the BSE. It was later quoting at Rs 581, still up 3.88 per cent.
The scrip climbed nearly six per cent on the National Stock Exchange as well, touching a high of Rs592.40, before it eased to Rs583.95, still up 4.44 per cent.