New Delhi: 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.
The ratio is on expected lines, though some players felt Tech Mahindra shareholders should have got a slightly better deal because of the liabilities in Mahindra Satyam. The merger will create the fifth largest player in the listed I-T services space, with combined revenues of a little over Rs 10,000 crore.
"Given that TechM would become a more diversified entity, with reduced client and vertical concentration street multiples for TechM could see an improvement, contingent on the revenue and margin pain on account of BT subsiding. We believe TechM stock will see a one-time adjustment tomorrow based on the swap ratio and trade going forward on the quantum of synergy benefits articulated by the management," brokerage house Nomura said in a note on Tuesday.
Satyam shares were flat at Rs 74.30, and Tech Mahindra shares were up 2 per cent at 662.