Tech Mahindra - Merger finally consummated - Kotak

The Tech Mahindra-Satyam merger is finally complete after multiple delays. TM is working on the final organization structure which will be communicated in due course. Pooling-of-interest method of accounting means no goodwill will be created in the process of consolidation of financials. Liabilities of Satyam will be carried over to TM. Merger will result in 24 mn treasury shares which may be a good currency for pursuing M&A opportunities.

Inexpensive valuations drive our ADD rating.

Source : Equity Bulls

Keywords