The share price of Satyam Computer Services rose on renewed buying interest today following reports that the company has forged a strategic alliance with US-based Evolutionary Technologies International.
The stock gained 1.15 per cent to settle at Rs 238.40 on the BSE, recovering from a low of Rs 230.55 but off from its intraday high of Rs 239.70. Over 56.14 lakh shares changed hands.
In 20 sessions between August 5 and September 3, the scrip rose by 21.4 per cent to Rs 235.70, from Rs 194.20.
Satyam Computer today announced a strategic alliance with Evolutionary Technologies International Inc (ETI). Under the pact, Satyam will provide consulting and integration services on ETI Solution Version 5.0 software to Global 500 companies.
Analysts said the high-end consulting and integration services will help Satyam to increase its profit margin and move up the value chain.
Of late, the stock has seen a sustained rise on a slew of developments. Initially, the rise in the share price was on speculation that the company is in the process of bagging a large new order from the US, that spans a 15-year period. The company, however, squashed such rumours on Thursday.
Reports that the Tata group was interested in acquiring Satyam Infoway (Sify) also led to the surge in the Satyam scrip. There were rumours that the company plans to sell off Nasdaq-listed Sify. The Tata group and a few private equity investors led by Warburg Pincus, it seems, have emerged as front runners to acquire Sify.
Earlier, Warburg Pincus had bought a 5.3 per cent stake in Satyam Computer through open market purchases between 25 June and 6 August 2002.
The Tata group's offer of $70 million for the stake in Sify is nearly double the market capitalisation of the internet service provider (ISP), of about $40 million.
The Tata group, which bought a portion of the government's stake in VSNL early this year, is believed to be keen on acquiring Sify, as it will make the group a dominant player in the domestic internet service provider market.
VSNL is the country's second-largest internet service provider, with a subscriber base of over 5.5 lakh, while Sify is the largest, with the number of subscribers topping 6 lakh.
