Satyam down 8%, Tech Mahindra by 4% on 1st day of open offer

Satyam down 8%, Tech Mahindra by 4% on 1st day of open offer
PTI
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First Published: Fri, Jun 12 2009. 11 48 AM IST
Updated: Fri, Jun 12 2009. 11 48 AM IST
Mumbai: Satyam Computer fell sharply by over 8% within an hour of firm opening, and Tech Mahindra slipped nearly 4% on the Bombay Stock Exchange on the first day of the open offer on Friday.
Shares of Satyam witnessed high volatility as it opened on firm note but soon plunged to a low of Rs74.10, down by 8.35% from its previous closing. Tech Mahindra also saw weak trading in the morning and dipped 3.71% to a low of Rs745.20 on the BSE.
Satyam’s new owner Tech Mahindra’s Rs1,154.66-crore offer opens today for another 20% holding in the once iconic IT company.
Analysts feel the open offer is unlikely to get full subscription as the current market price is far higher than the offer price of Rs58 a share.
“Institutional investors are buying into Satyam for the past few days. However, in the price range of Rs80-85,” Unicon Financial CEO G Nagpal said.
Satyam was trading lower 7.2% at Rs75 in early trade.
On volume front, the scrip was among the top traded counters with over 9.15 crore shares getting traded.
Market observers said Tech Mahindra, which ended with a loss of 1.40% yesterday, is witnessing a logical correction since its valuation has more than doubled since its acquisition of Satyam.
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First Published: Fri, Jun 12 2009. 11 48 AM IST
More Topics: Satyam | Markets | Stocks | BSE | Tech Mahindra |