Mahindra Satyam Investors Annoyed with Management on Swap Ratio with Tech Mahindra

[sridhar]

Mahindra Satyam investors are showing their anger on online forums after the recent AGM of the company where some small investors raised concerns over the bad swap ratio for the merger of Mahindra Satyam and Tech Mahindra.

Satyam Computers was acquired by Mahindra Group and they have been keeping the stock price under pressure. The company performed well, but the management kept the share price lower.

Some small investors have also decided to challenge the decision of merger in the court. They should act fast and move court at earliest. The bad swap ratio will impact thousands of investors, who lost money three years back with Ramalinga Raju confessed his economic fraud.

Small investors have lost money in the stock and most of them have not been able to recover their money as the stock has rarely crossed Rs 100 level after the scam.

Mahindra Satyam and Tech Mahindra touched 52-week high in today's trade.

[moderator]

it will be a difficult battle for investors of Mahindra Satyam. The larger shareholders haven't raised any alarm. IL&FS is there, but they didn't comment on merger swap ratio.

The swap ratio has been calculated based on market price during the time period and it matches completely correctly with that.

I am wondering, what argument will small investors present, even if they go to court for justice in this case.

I also read reports on Hindu Business Line that some investors raised issues about management practices and Vineet Nayaar lost his temper during the AGM.

[sridhar]

the court has adjourned for 3 weeks.

lets see what comes out in the next session. The Tech Mahindra management is confident that things will be in their favor.

the time will tell what the court will decide. i am of the view that Mahindra Satyam shareholders should get better swap ratio as the business has improved for the company in the past three years.