Shares of Mahindra Satyam at the BSE ended close to four per cent higher on Thursday ahead of the company’s board meeting tomorrow to clear the proposal for a second round of preferential allotment to Tech Mahindra.
Satyam surged 5.75 per cent in early trade but pared some of the gains towards mid-session. Finally, it settled the day at Rs 73, up 3.62 per cent from the previous close.
“The board is meeting on 10 July to consider the proposal of Tech Mahindra to raise its stake through preferential allotment; that is the main agenda of the meeting,” Mahindra Satyam Chairman Kiran Karnik said.
After acquiring 31 per cent for Rs 1,750 crore in Satyam, Tech Mahindra had made an open offer at Rs 58 a share. However, the proposal got a timid resposnse as Satyam was trading in the range of Rs 70-Rs 80 a share during the period of open offer which closed on July 1.
On Wednesday, the Company Law Board approved the allotment of an additional 19.86 crore shares at Rs 56 a piece on preferential basis, aggregating to Rs 1,112.48 crore, to Tech Mahindra, thereby, raising its holding in Mahindra Satyam to about 43 per cent of the enhanced share capital of Satyam.
Satyam rose on the National Stock Exchange also where shares surged 3.61 per cent to close at Rs 73.20. On the volume front, over 3.60 crore shares changed hands on both the bourses.
Shares of Tech Mahindra,too, rose 1.41 per cent to settle at Rs 695.30 on the BSE.