Will Tech Mahindra be able to stabilize Mahindra Satyam? This is the big question of the day and the same subject comes to fore as Tech Mahindra said it would still look to boost its stake in Mahindra Satyam through a purchase of new shares direct from Satyam. There is no doubt that it may stimulate others also especially after a public offer received a poor response.

Tech Mahindra Ltd., formerly known as Mahindra British Telecom (MBT) is an Indian Information Technology service provider company and is a joint venture between Mahindra & Mahindra Limited (M&M) and British Telecommunications plc (BT), UK with M&M(Mahindra and Mahindra) holding 44% and BT holding 39% of the equity.

It should be noted that Tech Mahindra acquired a 31 percent stake in Satyam Computer Services in April for around $360 million, in the month after the company was hit by financial reporting scandal, and introduced a public offer to buy up to 20 percent in the open market at 58 rupees a share to take a majority stake. But only 420,915 Satyam shares were tendered to the offer and it did represent less than 0.1 percent of the outstanding shares, Tech Mahindra said in a filing to the stock exchange. Tech Mahindra held 31.04 percent of Mahindra Satyam after the open offer, which ended on July 1.

What is the current status of shares then? Shares in Mahindra Satyam, at the moment, ended nearly 5 percent lower on Monday at 73.70 rupees. However, it was sharply higher than the open offer price. It is up 56 percent since April 13, when Tech Mahindra won the auction.

Can anyone forget the episode of Satyam? Its founder and then chairman Ramalinga Raju had shocked investors in January by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India’s No. 4 software services exporter.