Satyam down 8 pc; Tech Mahindra 4 on 1st day of open offer
Satyam Computer fell sharply by over 8 per cent within an hour of firm opening, and Tech Mahindra slipped nearly 4 per cent on the Bombay Stock Exchange on the first day of the open offer on Friday.business Updated: Jun 12, 2009 12:17 IST
Satyam Computer fell sharply by over 8 per cent within an hour of firm opening, and Tech Mahindra slipped nearly 4 per cent on the Bombay Stock Exchange on the first day of the open offer on Friday.
Shares of Satyam witnessed high volatility as it opened on firm note but soon plunged to a low of Rs 74.10, down by 8.35 per cent from its previous closing. Tech Mahindra also saw weak trading in the morning and dipped 3.71 per cent to a low of Rs 745.20 on the BSE.
Satyam's new owner Tech Mahindra's Rs 1,154.66-crore offer opens today for another 20 per cent holding in the once iconic IT company.
Analysts feel the open offer is unlikely to get full subscription, as the current market price is far higher than the offer price of Rs 58 a share.
"Institutional investors are buying into Satyam for the past few days. However, in the price range of Rs 80-85," Unicon Financial CEO G Nagpal said.
Satyam was trading lower 7.2 per cent at Rs 75 in early trade.
On volume front, the scrip was among the top traded counters with over 9.15 crore shares getting traded.
Market observers said Tech Mahindra, which ended with a loss of 1.40 per cent yesterday, is witnessing a logical correction since its valuation has more than doubled since its acquisition of Satyam.