Markets
BSE See NSE See 39,434.94
311.98 (0.8%)
collapse Related Readings collapse

Tech Mahindra + Mahindra Satyam: A Wealth-Creating Marriage

| 4/5/2012 10:54 AM Thursday

This is probably the beginning of the end of one of the most dramatic corporate events that unfolded in India with the confession of Ramalinga Raju, the former chairman of Satyam about the accounting fraud in the company (See box: Journey Till Date). The end started with the Board of Directors of Tech Mahindra (Tech M) and Mahindra Satyam (Satyam) approving the merger of both the companies along with their wholly-owned subsidiaries, Venturbay Consultants, C&S System Technologies, CanvasM Technologies and Mahindra Logisoft Business Solutions. The swap ratio approved by the board of both the companies is 2:17. This means that a shareholder would get two shares of Tech M (face value of Rs 10 each) for every 17 shares of Satyam (face value of Rs 2 each) held by him/her. The merger process is likely to take up to six to nine months to complete, and will be effective from April 1, 2011.

We asked C P Gurnani, CEO, Mahindra Satyam, as to what prompted such a move. According to him, “The decision of merging the two companies was taken after an extensive and careful consideration about what we need to do in the changing and competitive environment”. Gurnani further added, “There were many milestones, small and big, on the way such as restatement of accounts, our first acquisition, reinforcing the confidence of customers and associates that we achieved, and only then did we go in for the merger of the two entities”.

Moreover, the lacklustre financial performance of Tech Mahindra also seems to be one of the reasons for the announcement of the merger. at this moment. We did ask Gurnani as to whether the timing of this merger was meant to boost the performance of an otherwise laggard Tech M. On this, he commented, “Over the last three years, Mahindra Satyam’s business has revived and is on a growth path. Right now, there is enhanced visibility on legacy issues and the liabilities of Mahindra Satyam. Hence this was an appropriate time for the merger.”

 

Find More Articles on: DSIJ Magazine, Cover Story, Markets, News, Product, Large Cap

«« First « Previous |1 2 3 4 5 6 7 8 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

Torrent Power shines on the bourses

Vinayak Gangule / Article rating: 5.0

Torrent Power sparked in Tuesday’s trading session as it informed bourses that it has received an approval from Gujarat Electricity Regulatory Commission (GERC) for the power procurement arrangement of 278 MW between the company's UNOSUGEN Power Plant (capacity of 382.5 MW) and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat.

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.