Tech Mahindra plans to acquire 19.9 crore shares at a price of Rs 58 a share, which is at a 24% premium to the current stock price. Satyam Computer Services slipped 4.2% to Rs 46.9, while Tech Mahindra was down 3.7% at Rs 306 on Wednesday. The offer will be made by Venturbay Consultants, an arm of Tech Mahindra, which is on course to become the new owner of the firm. Kotak Mahindra Capital Co is the lead manager to the offer which will be open for subscription between June 12 and July 1 ‘09.

Tech Mahindra, which recently won the bid for Satyam Computer Services, will initially invest Rs 1,756 crore to acquire a 31% stake through a preferential allotment. It will spend Rs 1,155 crore to buy the 20% equity through the proposed open offer. Tech Mahindra have an option to raise the open offer price, seven days before it closure, under Sebi guidelines.

If the offer is not fully subscribed, the company will be allowed to acquire additional shares through a second preferential allotment. The shares acquired through preferential allotment and open offer will be subject lock-in period of three years. The new owner cannot sell Satyam’s assets for two years or discontinue its main business.

Tech Mahindra has already made it clear that Satyam will be a standalone entity. The change in ownership at Satyam comes after its disgraced founder B Ramalinga Raju admitted to perpetrating a Rs 7,000-crore fraud.