| Log in

Mahindra Satyam To Buy 16% In Malvinder & Shivinder’s Dion Global

12 February, 2012

Mahindra Satyam Computer Services Ltd is investing Rs 35 crore ($7 million) in a small public-listed firm called Dion Global Solutions Ltd, which develops software products for capital markets. Dion is majority-owned by Malvinder and Shivinder Singh, promoters of financial services firm Religare Enterprises and healthcare firm Fortis.

Under the agreement, Mahindra Satyam is acquiring fresh shares of Dion Global while the promoters are putting in a similar amount through a preferential allotment, to restrict equity dilution. The proceeds from the investment will be used by Dion Global to further enhance its offerings and geographic reach, according to a company statement.

At 12:22 pm, shares of Mahindra Satyam Computer Services were trading at Rs 72.25 per unit on the BSE, down 0.14 per cent from the previous close. Dion Global shares rose 4.85 per cent to hit the upper circuit for the day at Rs 33.5 in a weak Mumbai market on Friday.

At this price, Mahindra Satyam will pick around 16 per cent stake in Dion Global as a part of the transaction. Promoters’ holding will also shrink from 63.9 per cent to 59.3 per cent, according to VCCircle estimates.

Dion Global (formerly Religare Technova Ltd) provides software solutions to financial institutions in the Asia-Pacific, Europe, North America and the Middle East. The company offers trading products, including online trading tools, order routing, execution and market data dissemination. The Noida-headquartered company claims to have more than 660 clients in 62 countries.

“We are convinced that Dion will become one of the foremost software solutions providers to capital markets globally and we are keen to participate in Dion’s promising future,” Mahindra Satyam chief executive officer C P Gurnani commented on the deal.

For Mahindra Satyam, formerly known as Satyam Computer Services Ltd, the deal is the first external investment after being hit by an accounting scandal involving its former promoter. Satyam Computer was acquired by the Mahindra Group in 2009.


Leave Your Comment
Mahindra Satyam & Japan's SBI Holdings To Set Up $50M Fund

Mahindra Satyam & Japan's SBI Holdings To Set Up $50M Fund

Anil Das 1 year ago
Computer services firm Mahindra Satyam is joining hands with Japan’s SBI...
Dion Global acquires remaining stake in German IT firm Swissrisk

Dion Global acquires remaining stake in German IT firm Swissrisk

Bhawna Gupta 3 years ago
Delhi-based software solutions provider for financial markets Dion Global...
Tech Mahindra to merge Mahindra Engineering with itself

Tech Mahindra to merge Mahindra Engineering with itself

Bhawna Gupta 4 years ago
Mahindra Group is merging its engineering services unit Mahindra Engineering...
No Comments

Mahindra Satyam To Buy 16% In Malvinder & Shivinder’s Dion Global

Powered by WordPress.com VIP