Shares of Tech Mahindra today fell by as much as 3 per cent in the morning trade following delay in the proposed merger of Mahindra Satyam with itself by six months.
Tech Mahindra scrip lost 2.85 per cent to Rs 1,015.90 on the BSE. At the NSE, the stock went down by 2.92 per cent to Rs 1,015.25.
Similarly, shares of Mahindra Satyam (Satyam Computer Services) also fell by 2.81 per cent to Rs 121.90.
Tech Mahindra had yesterday said it has extended the proposed merger of Mahindra Satyam with itself for six months.
"Board of directors extended the validity of the (amalgamation) scheme by a further period of six months i.e. up to September 30, 2013," the company had said in a BSE
The board has extended "scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd and Satyam Computer Services Ltd and C&S Systems Technologies Pvt Ltd and Mahindra Logisoft Business Solutions Ltd and CanvasM
Technologies Ltd with Tech Mahindra Ltd and their respective
shareholders and creditors", it had said.
Tech Mahindra took over reins of the scam-tainted Satyam Computer in April 2009 and rebranded it as Mahindra Satyam.
Tech Mahindra shares falls as merger with Satyam delayed
(Reuters): Shares in Tech Mahindra Ltd fall 1.9 percent, while Satyam Computer Services Ltd drops 1.6 percent, a day after the companies said a long-planned merger between the two had been delayed by an additional six months up to Sept. 30.
The companies did not give a reason for the delay in their exchange filing.
Brokerage Sharekhan says in an email to clients that the delay is "sentimentally negative" for the stocks, attributing the reason to opposition to the merger from the Andhra Pradesh High Court.
"While business has been as usual for both the entities and Tech Mahindra has already started seeing a lot of synergistic benefits from Satyam, the Street has been pricing in the merger," says Sharekhan.
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