Shares of Tech Mahindra and Mahindra Satyam fell over 3 per cent each ahead of the merger. The latter will be available for trading only till July 4.
Tech Mahindra has initiated the technical process to dissolve the shares of Satyam and allot new shares to the investors, consequent to the amalgamation of the two companies. It will take about 10-14 days to complete the process.
Shareholders of Satyam will get one share (Rs 10 each) of Tech Mahindra for every 8.5 shares (Rs 2 each) they hold in the company. Tech Mahindra has transferred 20.40 crore shares of Satyam to TML Benefit Trust following the merger.
After the suspension of trading, the company will identify the shareholders, send the list to the board, get its approval before allotting them. “This process will take about 10 days,” G. Jayaraman, Company Secretary and Compliance Officer of the merged entity, told
Shares of Tech Mahindra slid 3.3 per cent to trade at Rs 996.05 on the NSE on Tuesday, while Mahindra Satyam crashed 4 per cent at Rs 114.40.
Tech Mahindra has fixed July 5 as the record date for Satyam shareholders to receive Tech Mahindra shares.
According to Nirmal Bang, post record date Tech Mahindra shares will be received in 4-5 days. Tech Mahindra share is cum dividend of Rs 5 a share and will continue to remain cum dividend till August 1.
Post the merger, Tech Mahindra shares will continue to remain cum dividend and provide an arbitrage opportunity to the tune of 18 per cent (annualised basis) excluding all expenses.