Satyam Formally merged with Tech Mahindra

Jul 15, 2013 18:54 IST

Tech MahindraSatyam on 15 July 2013 formally merged with Tech Mahindra. After debuting on the stock market in 1995, Satyam soon went on to become one of the country's top five IT companies and its share price was trading 250 rupees level in late 2008. It came to be known by January 2009 that Satyam was home to India's biggest ever corporate scam. Satyam is a Sanskrit word that means truth.

A quick revival, however, followed with its takeover by Tech Mahindra through a government-monitored auction process and its name was changed to Mahindra Satyam. Tech Mahindra on 12 July 2013 announced the completion of allocation of its shares to the shareholders of Satyam Computer Services, raising the issued capital of the firm from 129 million shares to 232 million.

Many changes have come through under Mahindra’s and the group finally decided to amalgamate the two IT companies under its fold. Shares of Mahindra Satyam are no longer traded on the bourses. They last traded at a level close to 120 rupees a piece and the value of each erstwhile Satyam share is now equivalent to about 130 rupees a piece, taking into account Tech Mahindra's current share price of 1120 rupees.

As per the merger ratio, two Tech Mahindra shares have been given for every 17 shares held by Satyam investors. Experts say it made sense for the new owner to drop the Satyam brand name from the business, given its infamous past.
Following the integration, Tech Mahindra is now amongst the top-5 IT companies of India with revenues of 2.7 billion US dollars and expects it to rise to 5 billion US dollars by 2015. The integration of two entities makes it a much larger software company and will also aid in cracking and winning larger outsourcing contracts.

Quick Digest

Who: Satyam.

What: merged with Tech Mahindra.

When: 15 July 2013.

Is this article important for exams ? Yes42 People Agreed
Read more Current Affairs on: Satyam , Tech Mahindra , IT companies

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