Tech Mahindra rose 3.77% to Rs 1077 and Mahindra Satyam gained 3.96% to Rs 124.65.
The BSE Sensex was up 329.89 points, or 1.78%, at 18,882.01.
Shares of Tech Mahindra had outperformed the market over the past one month till 26 June 2013, rising 9.01% compared with the Sensex's 5.85% fall. The scrip had also outperformed the market in past one quarter, falling 0.28% as against Sensex's 0.81% fall.
Shares of Mahindra Satyam had outperformed the market over the past one month till 26 June 2013, rising 9.30% compared with the Sensex's 5.85% fall. The scrip had, however, underperformed the market in past one quarter, sliding 5.10% as against Sensex's 0.81% fall.
The announcement was made during trading hours on Tuesday, 25 June 2013. Shares of Tech Mahindra rose 1.02% and Mahindra Satyam gained 1.09% on that day. Shares of Tech Mahindra have risen 7.75% in three days from Rs 999.50 on 24 June 2013. Shares of Mahindra Satyam have risen 8.63% in three days from Rs 114.75 on 24 June 2013.
The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said.
The board of directors of Tech Mahindra at its meeting held on 25 June 2013 fixed 5 July 2013 as the record date for determining the shareholders of Mahindra Satyam who would be entitled to receive shares Tech Mahindra as per the amalgamation scheme. The swap ratio for merger has been fixed at two shares of Tech Mahindra for every 17 shares held in Mahindra Satyam.
Tech Mahindra acquired erstwhile fraud-hit Satyam Computer at an auction overseen by government-appointed directors in April 2009. Satyam Computer was renamed Mahindra Satyam.
Mahindra Satyam and Tech Mahindra announced their intention to combine on 21 March 2012, 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. The Andhra Pradesh High Court, however, approved the merger on 11 June 2013.
Even as the amalgamation awaited final court approval, the two companies have already been operating as a single entity business-wise.
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