The Hindu Business Line : Mahindra Satyam told to allot shares to Venturebay

New Delhi, July 7 The Company Law Board (CLB) has authorised Mahindra Satyam, the erstwhile Satyam Computer Services Ltd, to allot 19,86,58,498 equity shares of Rs 2 each to Venturebay, a sunsidiary comtrolled by Tech Mahindra.

Giving the nod to the application, the CLB Chairman, Mr S Balasubramanian, said “The company is authorised to issue and allot 19,86,58,498 equity shares of Rs 2 each at the premium of Rs 56 to Venturebay, on a preferential basis in terms of Section 81 (1)A of the Companies Act.”

Satyam had moved CLB after the open offer bid by Tech Mahindra to acquire 20 per cent more in Satyam turned out to be a damp squib, with only 4.20 lakh shares or 0.1 per cent subscribing to the offer.

Statutory auditors

The order has also authorised Satyam board to appoint statutory auditors to conduct and carry out audit of the company for 2009-10 subject to rectification by the general body as and when AGM is held. “Other relief will be considered after the Central Government files its reply to the application,” the order said. The replies have to be filed by July 14, and compliance with the order to be reported to CLB.

The CLB is likely to consider later the Government’s application to withdraw four of its six directors from the board.

Our Hyderabad Bureau reports: Sources in the company, however, felt that the open offer turning to be a damp squib was good for Satyam as it could retain the money deposited by Tech Mahindra for share acquisition. The agreement allowed Tech Mahindra to acquire a further 20 per cent at Rs 58.

“Had the market responded well, the deposited money would have gone out to the investors. Now that there are no takers for shares at Rs 58, the company (Satyam) could issue the shares at the rate, retaining the funds,” the sources said.

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