Another Rs 1,000 crore to fund the Rs 2,875 crore deal will be through internal accruals.

The company has to pay Rs 2,875 crore for acquiring the troubled IT giant within four days of the Company Law Board approving the deal. While Rs 1,750 crore is to be paid for a preferential allotment of 302.8 million shares, amounting to 31 per cent of Satyam's equity, another Rs 1,150 crore has to be kept in an escrow account for an open offer to acquire 20 per cent. 

A banker familiar with the developments said the Rs 1,000 crore internal accrual figure included the anticipated cash receipts in the last quarter. The company had internal accruals of Rs 765 crore at the end of the nine months ended December 31, 2008, and expected another Rs 250 crore for the quarter ended March 31.

On the second component, the banker said the company would issue Rs 600 crore through Non-Convertible Denetures of four to five years maturity at a coupon rate of 10.25 per cent. Another Rs 275 crore has been raised through one-year Commercial Papers issued primarily to mutual funds. Life Insurance Corporation, Birla Sun Life Insurance and Kotak Life Insurance are among the eight entities that will subscribe to the NCDs and CPs.

On the last element, the bridge loan, sources familiar with the transaction said talks were on with banks to raise dollar-denominated as well as Indian currency loans. The funds will be raised through Venturbay Consultants, a subsidiary of Tech Mahindra, which won the bid.

Some funds would be raised directly by Tech Mahindra. The company had a net worth of Rs 1,753 crore at the end of December 2008. This is being done to ensure that Tech Mahindra is not overburdened with debt servicing commitments.  

Typically, IT companies have near-zero debt. Tech Mahindra had Rs 95 crore debt at the end of March 2008.  Its market capitalisation has slumped 67 per cent to Rs 4,375 crore from its January 8, 2008, peak of Rs 13,431 crore.

Including Satyam's shares, the combined market cap on Monday was Rs 10,039 crore.

Kotak Mahindra is the lead arranger appointed by the company for raising the loan.