The board will make the financial and legal data available to those shortlisted companies who will qualify in the EoI criteria.
On the conclusion of the mandatory open offer to shareholders of Satyam Computers, the new owner, Tech Mahindra, has a little over 42 per cent stake in the company, as against the original plan of acquiring a total of 51 per cent of the equity.
According to sources, nearly, 380 employees, who were on the virtual pool, were asked to join back the company. Earlier, Tech Mahindra, the new owner of trouble-torn Satyam, had identified and put 8,000-10,000 surplus employees of the IT firm under a programme called -- virtual pool -- where in an employee is paid part of the salary and retained on job.
The company had a net profit of Rs 4 crore (Rs 40 million) in January this year, Satyam said in a regulatory filing to the stock exchanges. The total income in February stood at Rs 637 crore (Rs 6.37 billion) while in January it was at Rs 647 crore (Rs 6.47 billion).
Tech Mahindra, the new owner of Satyam, has advised the crisis-hit IT firm's shareholders to wait till June 22, the last date for revising the offer price, before tendering their shares.
Charges against Raju and others include criminal conspiracy and forgery.
The Special Court on Monday has sentenced erstwhile Satyam chairman B Ramalinga Raju and his brother Rama Raju to six months imprisonment for violating provision of the Companies Act.
Some employees have alleged that close to 20 employees of the troubled Satyam Computer Services have been promoted to the I-1 and I-2 bands (representing assistant vice-president and vice-president levels) and also received a salary hike of 20-40 per cent. The timing has caused much resentment with some employees taking up the matter with the human resources department.
The board of directors of the company at its meeting on Monday day have approved the issue of 1.36 crore shares by way of private placement or Qualified Institutional Placement basis, Tech Mahindra said in a filing to the Bombay Stock Exchange.
All the 10 accused in the case, including prime accused Satyam Computers founder and former chairman B Ramalinga Raju and his brother and Satyam's former MD B Rama Raju, appeared in the court, as per its direction.
Months before the scam at Satyam had come to light with confessions of its founder and former chairman B Ramalinga Raju, the Satyam scrip had hit a 52-week high of Rs 542 in May last year. The IT firm's market capitalisation had been over Rs 36,600 crore (Rs 366 billion) at that time.
Raju was arrested by the Crime Investigation Department of Andhra Pradesh Police two days later along with his brother.
"We have Rs 2,200 crore odd debt which we took to acquire a stake in Satyam... the purpose we are taking this QIP is to retire the high cost debt. My sense is that we are looking at retiring between Rs 500 crore and Rs 1,000 crore of debt," the newly appointed CEO of Tech Mahindra, Sanjay Kalra, said. On Tuesday, the Tech Mahindra board had approved the issue of 1.36 crore shares by way of Qualified Institutional Placement basis.
Now, it is life as usual in the merged entity, said an associate.
At least seven companies, including Larsen & Toubro, i-Gate, Spice and Mahindra Group, have already submitted proposals to the board last week and the bids to be accepted till March 20. The board has already said that it has received adequate interest from both Indian and international bidders, including private equity firms.
Kotak Mahindra Group MD Uday Kotak on Friday said it will be tough for stock exchanges to decide whether to stop trading in the Satyam scrip, which has fallen by over 95 per cent in a matter of two days' trading on the NSE.
Tech Mahindra, the highest bidder for Satyam Computer Services, has tied up Rs 875 crore funding from mutual funds and insurance companies and is in talks with banks to mobilise Rs 1,000 crore bridge loans.
ADAG, Mahindra BT, L&T Infotech may team up with PEs.
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Corporate lawyers say the fine on independent directors will make them more cautious and some will be wary of taking assignments from companies with low corporate governance standards.
This is one of the major corporate frauds in the country.
Tech Mahindra would pay Rs 1,756 crore (Rs 17.56 billion) before the deadline of April 21 for acquiring 31 per cent stake in Satyam Computer for which it got the approval from the Company Law Board on Thursday.
IT stocks attracted robust demand on Monday, rising by as much as over 2 per cent, on hopes that the rupee's weakness will boost dollar revenues of the software firms.
Now sole contender as L&T Infotech quits race
The incidence of shareholder activism in India is more than that in other Asian countries, according to a BNP Paribas Asia Strategy report.
First sequential decline in a decade as 8 of top 15 software firms report drop in manpower
Setting aside the ban on PwC, which is one of the Big Four global accounting firms, SAT said only the national auditors watchdog ICAI (Institute of Chartered Accountants of India) can take any action against its members and fraud cannot be proved on the basis of negligence in auditing.
Within a week of Tech Mahindra emerging the successful bidder for Satyam and depositing the entire amount in two escrow accounts on Tuesday, Satyam employees appear in a jubilant mood. Even those who thought job losses were inevitable now see growth. Tech M depositing the amount for acquiring the stake in Satyam has given assurance to the employees. "This is swift and concrete action. We are now sure our jobs are protected," said a Satyam employee.
The new bosses of Satyam Computer Services took the step of directly taking questions from apprehensive employees.
One associate feels rebuilding trust in existing and prospective clients will take six months to a year. "Currently, it's business as usual for those who are involved in project development but not for those in business development. We don't have financials and without it we cannot convince clients about our capabilities. Now that we have come under the umbrella of Tech Mahindra, things may change for the good soon," he said.
'I chose the army over glamour,' says Major Sheena, who feels no other profession elicits the kind of respect like the army does.
His compensation in FY17 was more than the combined salaries of the entire boards of TCS, Wipro and Infosys. 'I am a self-made man from a very modest background,' Tech Mahindra's CEO C P Gurnani tells Shyamal Majumdar.
For Tech Mahindra, the successful bidder for Satyam Computer Services, it was "a game-changing day," according to Anand Mahindra, vice-chairman & MD of Mahindra & Mahindra.
Nine months have passed since the country's largest financial scandal hit Satyam Computers, after its promoter Ramalinga Raju confessed to a fraud that its auditors had failed to detect.
For the Company Law Board, 2009 was a case of fence eating the crop, as the quasi-judicial body that was looking into the affairs of fraud-hit Satyam Computer saw its acting Chairman accused of graft.
The Company Law Board on Thursday completed the formality of approving the induction of Venturbay, a subsidiary of Tech Mahindra, as the strategic investor to acquire a 31 per cent stake in Satyam Computer Services and asked it to deposit Rs 1,756 crore for the deal by April 21 in a designated account.
The job placement rate for students trained by NIIT in China is over 90 per cent.' A revealing excerpt from Saibal Dasgupta's Running With The Dragon: How India Should Do Business With China.
"The price quoted by L&T (Rs 45.90) in the financial bid is fairly decent, compared with the share price of Satyam in the last three months. The team of (L&T chairman) A M Naik never expected that anybody could quote 10 per cent above their price, as there was no clarity on Satyam's liabilities. Even if somebody had quoted less than 10 per cent of what L&T quoted, the company could have raised the bid in the open bidding round," said a source in L&T.
The Sensex took less than two years to rally from the 10,000-mark it first hit in February 2006 to double that on that New Year's Eve.
In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head - Equity Research (Retail), Anand Rathi Financial Services Ltd, answered some important questions on the market.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
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