The shares of Tech Mahindra and Satyam spurted today following board approvals of their merger. Tech Mahindra rose by Rs 41.45 to Rs 689.80, while Mahindra Satyam rose 6.39% to Rs 79.20 at 2.19 pm IST on the BSE.
The Boards of Tech Mahindra and Mahindra Satyam, in their meeting held today approved the merger of both companies along with certain wholly owned subsidiaries.
The merged entity is expected to benefit from operational synergies, economies of sale, sourcing benefits and standardisation of business processes. This merger will create the fifth largest player in the listed IT players in the country.
Consolidation and mergers in the software business is good for Indian companies to derive synergies and compete in the market place.