Mahindras, the only daring info giants, to take over the Sathyam post the mighty corporate scam, have stabilized and now merged with their parent.

This is good news for the share holders of Mahindra Sathyam, as it merged with the parent company Tech Mahindra, in a ceremonious celebration on Wednesday. The boards both the companies have approved their merger with a swap ratio of 2:17. This means two shares of Tech Mahindra will be given for every 17 shares of Mahindra Satyam. Making the new formed entity the fifth largest IT Company in the nation, by market cap.

In a statement to the Bombay Stock Exchange Mahindra Satyam said, "All assets and liabilities of the company will be transferred to and vested in Tech Mahindra at book values." The Mahindras said the merger was being done to consolidate the information technology, software and related businesses of the group into a single entity providing services in this sector

The new venture will be run by CP Gurnani as its CEO. He has been credited with the profitability of the company. Vineet Nayyar, who was Chairman, will retain the post. However, he will assume a non-executive role after the merged firm stabilizes. The Chief Financial Officer will be Sanjay Anand.

The MSat-TechM merger may well signal the end of the road for the brand Satyam that took a major beating when the worst corporate fraud in India’s history rocked the company. (With inputs from internet- AarKay)