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Tech Mahindra
2013
Mahindra
Satyam 2012

Panel Members
Anshuni Churi (13)
Ashley Lopes (18)
Aurella Machado (21)
Christabel Dsouza (29)
Frenzia Fernandes (42)
Kalpesh Paradkar (59)
Tech Mahindra 2013

Flow
About Tech Mahindra
About Mahindra Satyam
Key details, Procedure and Key Advisors of the
merger
How the Deal got finalized
Post merger Analysis
Synergies
Comments
Tech Mahindra 2013

 Tech Mahindra 2013

FORMAL TYPE : PUBLIC COMPANA RAJU

Industry : IT Service and IT consulting

FORMAL
Founded: 2009
Defunct:
2013 TYPE : PUBLIC COMPANY
CEO : ANAND MAHINDRA
Headquarter : Hyderabad ,INDIA
INDUSTRY : IT Service and IT consultin
Founded: 1986
HEADQUATER : PUNE ,INDIA

Tech Mahindra
2013
Mahindra
Satyam 2012

FINANCIAL STATEMENTS

Tech Mahindra 2013

RATIOS
CURRENT
RATIO (%)
TOTAL ASSET
TURNOVER (%)
DEBT EQUITY
RATIO (%)
ROCE (%)
E.P.S
Tech Mahindra 2013

0.95%

0.98%

1.22%

1.07%

0.26%

0.33%

17.51%
50.93

16.05%
36.13

 Tech Mahindra 2013

FORMAL TYPE : PUBLIC COMPANY

FOUNDER : RAMALINGA RAJU

FORMAL TYPE : PUBLIC COMPANA RAJU

INDUSTRY : IT Service and IT

Industry : IT Service and IT consulting

consulting
Founded: 2009
Defunct: 2013
Headquarter : Hyderabad ,INDIA

Founded: 2009

Defunct: 2013

HEADQUATER : Hyderabad ,INDIA

Tech Mahindra
2013
Mahindra
Satyam 2012

Financial Statements

Tech Mahindra 2013

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RATIOS
CURRENT RATIO

2.37

TOTAL ASSET
TURNOVER
DEBT EQUITY RATIO
ROCE (%)
E.P.S

1.31

Tech Mahindra 2013

0.01
26.62%
10.22

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Major Competitors

Tech Mahindra 2013

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 Tech Mahindra 2013

13

14
Tech Mahindra 2013

Key Details
Appointed date of merger:1st April 2011
Merger ratio of 2 shares of Tech Mahindra (face value of

Rs. 10 each), for every 17 shares of Mahindra Satyam

(face value of Rs. 2 each) is approved by both the boards
Tech Mahindra to issue 10.34 crore shares to Mahindra

Satyam shareholders

Tech Mahindra 2013

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Process Of Merger & Approvals

Board of directors
Stock exchanges (BSE, NSE)
Competition Commission of India
Shareholders and creditors of TechM and Transferor
Companies
Registrar of Companies (Maharashtra and AP)
Regional Director (West and South)
Official Liquidator (Maharashtra and AP)
Bombay High Court, Andhra Pradesh High Court
Tech Mahindra 2013

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Key Advisors
Joint valuation advisors
Ernst & Young
KPMG
Independent fairness opinion bankers
Tech Mahindra: Morgan Stanley
Mahindra Satyam: J.P. Morgan
Advisors
Enam
Barclays
Legal Advisors
AZB & Partners

Tech Mahindra 2013

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How the Deal Got Finalized

11 June 2013 merger was completed.
After the Satyam scandal of 2008-09, Tech Mahindra bid for
Mahindra Satyam.
Top bidder with offer of Rs. 59/ share.
Venturbay Consultants Private Limited, a subsidiary
controlled by Tech Mahindra emerged as the highest
bidder.
Tech Mahindra raised Rs. 550 crore to fund the deal.
Thus through subsidiary Tech Mahindra emerged victorious.

Tech Mahindra 2013

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Merged Entity:
Tech Mahindra

Market Share

11%

5%

14%
20%

C.P. Gurnani

50%

TCS
Infosys
Wipro
HCL
Tech
Mahindra

Market share after merger

Managing Director
& CEO
Tech Mahindra 2013

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Rise in Share
Price
1st Jan 2012 to 1st Jan
2015:

Tech Mahindra 2013

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Change in Sales
Sales (rs. In Cr.)

Change in Net
Profit
Net Profit (in Rs. Cr)
3062.4

18,831.38

742.7
6,873.08

2013 (before merger) 2014 (after Merger)

Tech Mahindra 2013

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Equity Share Capital

Total Debt
Debt (in Rs. Cr)
1080.4

Equity share capital (in Rs.

Cr)
233.5

52.4
128.1

Tech Mahindra 2013

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RATIOS
Formula

Current ratio
Total asset
turnover
Debt equity

ROCE(%)

E.P.S

Tech Mahindra
2013
Mahindra
Satyam 2012

ratio

Current Assets
Current Liabilities
Net sales
total Assets

2.11

Long-term debt + Shortterm

debt +
Leases
.
Equity
Net operating profit X
100
capital employed
Earning available for
Equity share holders
number of Equity
shares

0.01

1.89

32.61

130.25
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Benefits from
the Merger

Tech Mahindra 2013

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 Tech Mahindra 2013

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 Tech Mahindra 2013

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Objectives of the Merger

To propel the combined entity into software
Company.
Industry leading performance.
To use IT strategies in evolving market.
Lead with revenue of US $2.4 bn, 7500+
workforce, 350+ active clients.

Tech Mahindra 2013

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Comments on the Merger

Fab 50 Co. in Asia as per Forbes 2014
US $4bn Co. with 107,100+professionals across 90
countries as per 2016
Decrease in the revenue
Acquired 6 companies
Reduced dependency on British Telecom
Telecom Baggage
Revenue rate:
Telecom jumped from $372 million to $468 million
Non telecom from $419 million to $432 million
Tech Mahindra 2013

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Success of the Merger

5th IT service provider

EBITDA increased from 4% to 13%
Diversified portfolio
Significant mileage in enterprise business and
telecom domain

Tech Mahindra 2013

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 Tech Mahindra 2013

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