Mumbai: Shares of Satyam Computer Services shot up Monday after its board named Tech Mahindra as the highest bidder to take over a strategic stake of 31 per cent in the company for Rs 1,756 crore ($351 million).
Tech Mahindra, which will also make an open offer for another 20 per cent stake in the scam-hit company through its subsidiary Venturbay Consultants, also saw its shares soar over 12 per cent soon after the announcement.
At the Bombay Stock Exchange (BSE), Satyam was ruling at Rs 50.15, with a gain of 6.36 per cent over the previous close. At one point on Monday, the scrip touched a high of Rs 54.90 against Tech Mahindra's winning bid of Rs.58 per share.
The scrip of Tech Mahindra, part of automobile major Mahindra and Mahindra, rose even higher in percentage terms and was trading at Rs 359.60, with a gain of 12.36 per cent over its previous close. The scrip had touched a high of Rs 400 during intra-day trading.
India's fourth largest software exporter Satyam Computer Monday said Tech Mahindra had emerged the highest bidder for its controlling stake, outbidding other two contenders - Larsen and Toubro and a consortium comprising Cognizant and Wilbur Ross.
The scam at Satyam, which came into light in January had seen its scrip plummet from a 52-week high of Rs 544 to a low of Rs 11.50 after its after its founder B Ramalinga Raju shocked India Inc by admitting to the massive financial fraud of Rs 7,800 crore (Rs.78 billion).
"The selection of the highest bidder, in a fair, open and transparent process, signals a new stage for the company in its progress towards stabilisation and growth," said Kiran Karnik, chairman of Satyam's reconstituted board.
"We hope this will infuse greater confidence and comfort amongst customers, who continue to be happy with Satyam's excellent service delivery. This event ought to dispel the anxiety of all stakeholders as it repositions the company's commitment to revival and good governance."
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