Mumbai, June 11: Tech Mahindra`s open offer for
acquiring a controlling stake in Satyam Computer, which begins
on Friday, may not be fully subscribed as shareholders will get
a better price in the market with the shares of the tainted IT
firm soaring over 33 per cent in the past three days.
The open offer price of Rs 58 a share by Tech Mahindra
for acquiring a controlling stake in Satyam is far below the
today`s market price of Rs 80 on the Bombay Stock Exchange.
With Satyam hitting the upper circuit for three straight
trading sessions, marketmen feel Satyam shareholders may
prefer not to tender their shares under the open offer as they
would get better valuations in the open market.
"The open offer would not be fully subscribed as
shareholders are getting better price in the market," Unicon
Financial Intermediaries CEO G Nagpal said.
Tech Mahindra`s Rs 1,154.66 crore open offer, which
begins tomorrow, would close on July 1, 2009.
However, analysts believe that even if under-subscribed,
Tech Mahindra is unlikely to revise the offer price or make a
preferential issue to hike its holding in Satyam.
"It is doubtful that the shareholders would tender their
shares at this rate as the market is currently giving better
returns than the price offered by Tech Mahindra. But
shareholders should not expect any revision in the offer
price," SMC Global Vice-President Rajesh Jain said.
Bureau Report
