For all practical purposes, the Rs 1,155 crore buyback offer by Tech Mahindra Ltd to shareholders of Satyam Computer Systems Ltd to get an additional 20 per cent stake is over. The offer, at Rs 58 per share, is meaningless for any shareholder, now that the scrip is trading at Rs 80, a premium of 38 per cent over the offer price.
“If the market price is higher than the open offer price then the issue will not get subscribed and a preferential issue will be made to Tech Mahindra,” said Amitabh Chakraborty, president equities, Religare Enterprises.
“We are in a 'silent period' due to Sebi guidelines and so none of our officials can talk,” a spokesperson of Satyam said.
Market players said that if the preferential issue is made to Tech Mahindra, then the Rs 1,155 crore that Tech Mahindra would have paid to existing shareholders through the open offer (for acquiring 199 million shares at Rs 58 per share) would go into the company’s coffers.
Between Tech Mahindra winning the Satyam bid on April 13 and three days before the company declared its results on June 9, Satyam’s share price has jumped 46 per cent, from Rs 49 to Rs 72 per share.
Some marketmen suspect foul play. “It is upto Sebi now to investigate who bought the shares at over Rs 70, when the open offer is at Rs 58,” said a senior official of a large mutual fund, seeking anonymity due to the sensitive nature of the issue.
However, others say the scrip rose due to the entry of a credible promoter. “Initially the share price was driven by the entry of an owner,” said Gaurav Dua, head of research, Sharekhan. “Later, the results declaration that showed a good annual revenue and operating margin, lifted the stock price.”