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Satyam gets CLB nod for sale process, to raise equity capital

20 Feb 2009 Evaluate

Scam-hit IT firm Satyam moved closer to getting a new owner on Thursday, with the Company Law Board allowing it to induct one or more strategic investors through a public auction and raise funds by preferential allotment of shares.

In its order, CLB chairman S Balasubramanian said it was necessary for the company to bring in long-term funds by inducting a strategic investor and accordingly the Satyam board can pass a resolution to enhance the company's authorised equity capital to Rs 280 crore, comprising 140 crore shares of Rs two each, from the current Rs 160 crore.

The board has also been authorised to make a preferential allotment of shares at par or at premium without the need of calling an AGM. The Satyam board would also have to seek CLB approval before actually allotting the shares on a preferential basis and provide it with full details about selection of the strategic investors.

Seeking to expedite the process of its sale, Satyam sought the CLB's permission on Wednesday to conduct a public auction for induction of a strategic investor and get the funds needed to ensure its uninterrupted operations. Those having evinced interest in acquiring Satyam include engineering major L&T, BK Modi group and Hindujas.

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Peers
Company Name CMP
TCS 2524.35
Infosys 1292.35
HCL Tech. 1450.90
Wipro 204.85
Tech Mahindra 1440.40
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