The stock nosedived 19.97 per cent to Rs 231.10 on BSE.
At NSE, shares of the company dipped 19.98 per cent to Rs 231.35.
The combined entity will have a revenue of over USD 150 million, close to 4,000 employees and multiple global delivery centres, Blue Star Infotech Limited (BSIL) had said in a BSE filing yesterday.
It will provide customers with digital transformation platform with capabilities in cloud, mobility, SAP, analytics, product engineering and test automation from locations in the US, the UK, Middle East, Singapore, Malaysia and India.
In a separate filing, BSIL said the Board has decided to purchase the entire business of the company's wholly-owned subsidiary Blue Star Infotech Business Intelligence and Analytics by October 31 for Rs 6.5 crore.