Tech Mahindra: Quotes, News

BSE 1441.5037.45 (-2.60%)

NSE 1441.5037 (-2.57%)

The merger of two biggies will lead M&M group's software business to a sixth position after TCS, Infosys, Cognizant, Wipro and HCL Technologies.

ET also reported that both accountants and merchant bankers hired for the merger process, will arrive at a valuation after estimating the share valuation of the two entities individually. The valuation will determine the share swap ratio for both the firms listed on BSE and NSE.

Top officials of the companies told ET that the fair valuation will be done by two large well-known accounting firms and two reputed international investment bankers.

They also added that the process may not be a smooth affair as two pending hurdles could pose a material impact on the valuation. One is an income tax claim of about Rs 2,500 crore and another is a claim from closely held companies of Mahindra Satyam's former chairman Raju's extended family for around Rs 1,200 crore.

These are pending issues which will be considered while arriving at fair valuation, said official.

At 12:30 pm IST, the scrip of Mahindra Satyam was seen up by 3.32% at Rs 65.30. The scrip touched an intraday high of Rs 68.10.

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