Tech Mahindra Emerged Victorious

IT services provider Tech Mahindra is the new owner of Satyam Computer Services.

The company bid the highest at Rs 58 per share leaving behind the rivals including L&T and Wilbur Ross.

L&T seen as the most strong contender posed a bid price of 46.50 Rs and Wilbur Ross bidding with just a 20 Rs per Share.

The Fraud hit company was hit by a massive sell-off, when in January ex. CEO Mr. Ramalinga Raju declared his plot of Rs 7000 crore+ fraud in public.

Tech Mahindra will have to pay Rs 1,757 crore to buy a 31% stake in Satyam Computer Services. The IT co will have a market cap of Rs 5,666 crore on expanded equity and diversified portfolio will be an added advantage. Tech Mahindra will have to pay a total of Rs 2890 crore for 51% stake in Satyam.

The acquisition will help the company, an arm of the Mahindra & Mahindra Group, to diversify into new areas instead of just depending on the telecom sector.

L&T, on the other side is positive to hold its 12% high rate stocks and equity balances of Satyam Computers.