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Mahindra Satyam gets CLB nod

HYDERABAD: Mahindra Satyam, formerly Satyam Computer Services, has announced that it had received approval from the Company Law Board to issue 19.86 crore shares of Rs. 2 at a premium of Rs. 56 to Venturbay Consultants Pvt. Ltd., a subsidiary of Tech Mahindra, on a preferential basis.

Tech Mahindra was allotted 31 per cent equity shares of Satyam earlier at Rs. 1,756 crore and Venturbay announced a public offer to take the balance 20 per cent from the open market. However, the open offer failed to evoke response from subscribers with only 4.21 lakh shares including 2.69 lakh underlying American Depository Shares were validly tendered, representing less than 0.1 per cent of the outstanding equity shares.

The allotment of new shares was made pursuant to Venturbay’s earlier offer that it would acquire the additional shares equal to the size of the offer in the event of public offer not fully subscribed. Accordingly, the company had deposited Rs. 1,152 crore in the escrow account for the public offer.

The allotment of preferential shares would take the total holding of Tech Mahindra to about 43 per cent of the outstanding share capital. The CLB also permitted the Mahindra Satyam board to appoint a statutory auditor for 2009-10, subject to such appointment being ratified by the shareholders during the next annual general meeting.

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