Money on the markets

Shares of Mahindra Satyam rose in an otherwise lacklustre market today, ending 5.41 percent higher at 112.95 rupees.

During market hours on Wednesday, Larsen & Toubro Ltd sought permission from market regulators to sell its stake in outsourcer Mahindra Satyam Ltd, according to a company spokesman.

L&T which lost out in the race for a controlling race in Satyam is considering the exit route, but under current conditions of sale, bidders for the company are barred from selling their stake.

L&T’s stake in Satyam dropped from 12 percent to 6.9 percent (valued at nearly 9 billion rupees or $190 million) post sale of the outsourcer to Mahindra, according to Thomson Reuters data. Institutional investors hold 10.39 percent, insiders or stakeholders 50.18 percent and mutual funds about 8.45 percent.

Mumbai-based L&T, which operates in diverse industries such as software, shipbuilding and engineering, closed 0.31 percent lower at 1514.8 rupees.

Satyam shares have steadily firmed up after the January 7 low of 23.85 rupees and posted a record return of 168.21 percent for the period till August 4.

The year to date return of Satyam on the BSE Sensex was -37.03 percent, while the standard deviation was a whopping 29.64 percent.

Do you think the outsourcer is in a strong position and can touch higher levels in the near future?