Tech Mahindra Q1 PAT vaults nearly 92 per cent to Rs276.55 crore
12 Aug 2011
Diversified conglomerate Mahindra & Mahindra group (M&M) merged its two technology companies, Mahindra Satyam and Tech Mahindra, creating the fifth largest software firm in India with revenues of about $2.4 billion.
The boards of Tech Mahindra and Mahindra Satyam today approved the merger of the companies at a swap ratio of 2:17.
Accordingly, shareholders of Mahindra Satyam (erstwhile Satyam Computers) will get 2 shares of face value Rs10 each in the combined entity for every 17 Mahindra Satyam shares.
The combined entity, whose name is yet to be announced, will be based in Mumbai, the companies said in separate filings with the stock market.
M&M group holds 47.65 percent stake in Tech Mahindra and Tech Mahindra, in turn, owns a little over 42.65 per cent in Mahindra Satyam. Tech Mahindra's holding in Mahindra Satyam is through a special purpose vehicle, Venture Bay Consultants.
The merger would also see British Telecom's stake falling to about 12.8 per cent from the present 23.20 per cent. Engineering major Larsen & Toubro holds 1.96 per cent stake in Mahindra Satyam as on December 31, 2011.
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