IT firm Tech Mahindra on Wednesday surged over six per cent on the Bombay Stock Exchange, a day after the company received green signal from market regulator SEBI on the Rs 1,154-crore open offer for the purchase of scam-hit Satyam Computer.
Shares of Tech Mahindra jumped 6.11 per cent to touch a high of Rs 593.50 on the Bombay Stock Exchange. It was later quoting at Rs 581, up 3.88 per cent.
A similar move was seen on the National Stock Exchange where the scrip climbed nearly six per cent to touch a high of Rs 592.40. It was later trading at Rs 583.95, up 4.44 per cent.
On Tuesday, market regulator Securities and Exchange Board of India (SEBI) cleared the Rs 1,154-crore open offer for the purchase of a 20 per cent stake in Satyam Computer.
Through Venturbay Consultants Pvt Ltd, its acquisition vehicle for the Satyam purchase, Tech Mahindra had announced an open offer on April 22 for buying additional 20 per cent from the shareholders of the IT firm, which was hit by the country's biggest ever corporate fraud early this year.
Besides, shares of Satyam Computer surged 7.71 per cent to touch a high of Rs 67.70. It was later trading at Rs 66.45, up 5.73 per cent on the BSE, while on the NSE it jumped 8.22 per cent to touch a high of Rs 68. It was later quoting at Rs 66.50, up 5.64 per cent.
The open offer was made in pursuant to Tech Mahindra buying a 31 per cent stake in Satyam for Rs 1,756 crore through issue of preferential shares after an auction process conducted by the government-appointed board of crisis-hit company.
Sebi received the open offer for its consideration on May 6, and issued its 'observations' on May 27, thus clearing the way for the open offer.
The issuance of Sebi's observations is mandatory for any company to go ahead with the open offer.
The open offer was made by Venturbay Consultants Pvt Ltd through Kotak Mahindra Capital, its merchant banker for the issue.
Tech Mahindra has made the open offer for the purchase of 20 per cent additional equity in Satyam at Rs 58 per share - the same price at which it bought a 31 per cent stake through a preferential issue of equity shares.