The boards of Mahindra Satyam and Tech Mahindra Ltd today approved the amalgamation of the companies.
According to split statements issued by the two companies on Wednesday, it has been suggested that Satyam Computer (Mahindra Satyam) shareholders will get two fully paid-up equity shares of Rs 10 each of Tech Mahindra for every 17 fully paid-up shares of Rs 2 each held.
Tech Mahindra will issue 10.34 crore new shares, thereby increasing its outstanding shares to 23.08 crore and its equity capital to Rs 230.8 crore.
Mahindra Satyam also known as satyam computer services, founded in 1987 by B.Ramalinga Raju is an It service company.The company deals in consulting and information technology (IT) services spanning various sectors, and is listed on the Pink Sheets, the National Stock Exchange (India) and Bombay Stock Exchange (India). Tech Mahindra Limited is an Indian provider of information technology (IT), networking technology solutions and business process outsourcing (BPO) services to the global telecommunications industry. The swap ratio for the merger of Mahindra Satyam with Tech Mahindra has been fixed at 8.5 shares of Satyam for every one share of Tech Mahindra, by the boards of the two companies. Tech Mahindra will be merged with Mahindra Satyam to build a 2.5-billion $ IT Company in India.