Mahindra Satyam shares to stop trading from July 4
Hyderabad: Mahindra Satyam (erstwhile Satyam Computer Services Ltd), which merged into Tech Mahindra last month, will become history in the records of BSE and National Stock Exchange (NSE) as trading of the company's scrip is likely to end from July 4.
"Trading of Satyam (stocks) will end on July 3 and there will not be trading from July 4 as the swap ratio of Mahindra Satyam and Tech Mahindra will come into force," a senior official of Tech Mahindra told PTI on Monday.
The boards of Mahindra Satyam and Tech Mahindra last year proposed a swap ratio of 2:17. Mahindra Satyam shareholders will get two shares of Tech Mahindra of Rs 10 each for every 17 shares they hold. Satish Kantheti of Zen Securities said fractional shares will be consolidated in trust and sold later.
The sale proceeds will be distributed to shareholders proportionate to their shares. IT services firm Tech Mahindra on June 25 announced the completion of Mahindra Satyam's merger with itself to create nation's fifth largest software services company with turnover of USD 2.7 billion.
Tech Mahindra Limited informed BSE that "the Board of Directors at its meeting held on June 25, 2013 has fixed July 05, 2013 as the Record Date for determining the shareholders of Satyam Computer Services Ltd ('Mahindra Satyam') who would be entitled to receive shares of the Company under the approved Scheme".
The USD 16.2 billion Mahindra Group had in 2009 taken over Satyam Computers after a multi-billion dollar scam by its founding chairman B. Ramalinga Raju came to light. Boards of Tech Mahindra and Mahindra Satyam approved the merger on March 21, 2012. After an approval from the Mumbai High Court, the merger had been awaiting clearances from Andhra Pradesh High Court, which gave nod on June 11, 2013.
According to records available with bourses, Satyam scrip which was listed on BSE in 1995 went as high as Rs 7,229 in March 2000 before plunging to Rs 11.50 in January 2009 when Raju's scandal broke out.
The scrip was also listed on the NSE. Tech Mahindra Managing Director C.P. Gurnani said they would continue to focus on telecom and manufacturing and aim to reach USD 5 billion mark in terms of revenues by 2015. Meanwhile, Tech Mahindra in a communication to stock exchange informed that 20.4 crore shares (equivalent to 17.33 per cent) of Satyam were transferred to TML Benefit Trust.
Shares of Tech Mahindra and Mahindra Satyam were quoting at Rs 1,032.20 and Rs 118.65, respectively on the BSE in the afternoon trade.
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