The announcement to this effect from the two companies was made after market hours on Tuesday, 11 June 2013.
Shares were Mahindra Satyam were up 1.58% at Rs 112.80. Tech Mahindra was up 1.48% at Rs 982.50.Shares of Mahindra Satyam had surged 4.17% to settle at Rs 111.05 while shares of Tech Mahindra had risen 2.91% to settle at Rs 968.20 on Tuesday, 11 June 2013.
The S&P BSE Sensex was down 68.12 points or 0.36% at 19,074.88.
The Andhra Pradesh High Court's nod for the merger removes the final hurdle in the union of the two IT companies. The ruling ends an 8-month-long legal battle waged by parties that claimed to be unsecured creditors and a clutch of minority shareholders of Mahindra Satyam who had challenged the merger proposal. The merger proposal has already been cleared by various other bodies, including the Competition Commission of India, BSE, National Stock Exchange and the Bombay High Court.
Tech Mahindra acquired erstwhile fraud-hit Satyam Computer at an auction overseen by government-appointed directors in April 2009. Satyam Computer was related renamed Mahindra Satyam.
Mahindra Satyam and Tech Mahindra announced their intention to combine on 21 March last year, but the merger proposal was stuck in the Andhra Pradesh High Court, which clubbed it with two separate petitions--one challenging the merger swap ratio of two shares of Tech Mahindra for every 17 Mahindra Satyam shares, and another filed by purported creditors claiming Rs 1230 crore they said they lent to Satyam Computer.
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Even as the amalgamation awaited final court approval, the two companies have already been operating as a single entity business-wise.
Mahindra Satyam's consolidated net profit galloped 468% to Rs 454.12 crore in Q4 March 2013 over Q3 December 2012. Income from operations remained almost unchanged at Rs 1935.73 crore in Q4 March 2013 on sequential basis.
Mahindra Satyam is a global business consulting and information technology services company.
Tech Mahindra's consolidated net profit surged 37% to Rs 377.24 crore on 6% growth in income from operations to Rs 1907.17 crore in Q4 March 2013 over Q3 December 2012.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.
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