Tech Mahindra shares hit 52-week high at Rs 1,043

As of closing price on Monday,the price ratio stood at 8.92 which is 4.9 per cent higher than the proposed swap ratio of 8.5.

While the company has not yet announced the merger date,the company had said in March that the merger may be completed in nine months time from then.

In such a scenario,investors of Tech Mahindra can sell their holding and buy Mahindra Satyam at current levels. This would result in gains, said a ICICIdirect research report.

If the shares of Tech Mahindra rise relatively higher than the shares of Mahindra Satyam,which has been the case in the last few trading sessions,then the differential and thus the arbitrage benefits could even rise.

Market experts say that this is an opportunity that long term investors of Tech Mahindra can look to exploit.