Tech Mahindra Ltd shares gain over 2 per cent and Satyam Computer Services Ltd rises around 1 per cent after Goldman Sachs initiates coverage of both companies with "buy" ratings.
Goldman says the planned merger between the two companies would create the fifth largest Indian IT offshoring company by revenue, offering "adequate scale to target potential big-ticket deals."
The investment bank adds a merged Tech Mahindra-Satyam company would see good revenue growth and better expense management, while providing higher cash returns to investors.
Copyright @ Thomson Reuters 2013
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
