Tech Mahindra is in no mood to relent on the price that investors will have to pay for the Satyam open offer.
According to company sources, they have an agreement with the Securities and Exchange Board of India (SEBI) that says the open offer has been priced at Rs 58 (the price at which it acquired 31 per cent stake in the open bidding) and even though the current market price of the share is above Rs 80, the company is in no mood to make investors happy.
That means the open offer is doomed to failure and Tech Mahindra is looking to up its stake further by a preferential issue of shares that will take its stake to 42 per cent. The added benefit that the company derives from it is that it pays the money to itself to hike its share in Satyam.
However, there is a wide gap which has emerged between the price offered by the company to buy the 20 per cent stake in Satyam and the share’s closing price of Rs 81 on the BSE just a day before the offer opened.
The controversy marred Satyam recently announced its financial results for the December quarter which unexpectedly showed a net profit of Rs 181 compelling shares to rise.
On Friday, Satyam share was down 0.5 per cent on the Bombay Stock Exchange at Rs 80.45.