Tech Mahindra shares up on merger

Shares of Tech Mahindra and Mahindra Satyam rallied by up to 6 per cent today.

Shares of Tech Mahindra and Mahindra Satyam rallied by up to 6 per cent today after diversified Mahindra group announced amalgamation of its two technology companies.

Cheering the move,shares of Tech Mahindra settled 5.48 per cent higher at Rs 683.90 on the BSE. During the day,the scrip soared over 7 per cent to touch a high of Rs 695.90.

Mahindra Satyam also recovered from the initial losses and ended the day 4.59 per cent up at Rs 77.55.

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“Tech Mahindra and Mahindra Satyam counters were active today and witnessed decent gains on news of Board approving amalgamation of Mahindra Satyam with Tech Mahindra,” Shanu Goel Senior Research Analyst Bonanza Portfolio said.

Jagannadham Thunuguntla,strategist & head of research,SMC Global said,”The share swap ratio was in-line with market estimates.”

Mahindra group today announced the amalgamation of its two technology companies,under which Mahindra Satyam will merge with parent Tech Mahindra,creating a USD 2.4-billion entity that will be the fifth largest software firm in India.

The merger ratio is pegged at 8.5:1,which means share holders get 8.5 share of Mahindra Satyam for each share of Tech Mahindra.