Mahindra Satyam says refund claims are untenable

IT services firm Mahindra Satyam said legal notices claiming a refund of Rs12.3 billion ($265 million) by 37 companies are "legally untenable".

In June, the company had received notices from a clutch of companies claiming a refund of advance payments.

Mahindra Satyam, earlier known as Satyam Computer Services, was acquired by Tech Mahindra in April after the firm was hit by India's biggest corporate fraud, which came to light in January.

Tech Mahindra, a unit of tractor and utility vehicle maker Mahindra & Mahindra, owns about 43% of Mahindra Satyam.

American depositary receipts of the company were trading down a percent at $5.17 in morning trade on the New York Stock Exchange.