Mahindra Satyam investors hit Upaid jackpot

Investors, who used the recent weakness in Mahindra Satyam to accumulate the stock, will likely laugh their way to the bank, post the company’s settlement with Upaid.

Grapevine has it that a large private life insurance company belonging to a prominent corporate house and a South India-based mutual fund had used the recent fall to accumulate sizeable chunks of the stock. The insurance player is said to have bought close to one crore shares, while the mutual fund bought about five million shares respectively.

The stock, which closed at Rs 103 on Wednesday, up 1%, has gained almost 12% in a week. Analysts say that the settlement for $70 million will eliminate the uncertainty surrounding its liabilities.

Upaid had filed the lawsuit in a Texas court seeking damages exceeding $1 billion, alleging forgery of documents necessary for transfer of proper title to its under an assignment agreement entered into in 1998.

Contributed by Vijay Gurav, Reena Zachariah & Apurv Gupta