CLB permits Satyam to start sale process, raise equity capital

New Delhi, Feb 19 (PTI) Paving the way for bringing in a
new owner at India's Satyam Computer, the Company Law Board
Thursday allowed the distressed IT firm to conduct a public
auction for inducting a strategic investors and to raise its
equity base.

After hearing a petition filed by Satyam Wednesday, CLB
ordered that the company could conduct an open transparent
auction process for inducting a strategic investor.

CLB also authorised the company's government-appointed
board for making allotment of preferential shares and raise
its equity capital by 50 percent from Rs 160 crore to Rs 240
crore. The authorised equity capital of the company, whose
shares have a face value of Rs 2 each, would increase to 120
crore from 80 crore, presently.

Seeking to expedite the process of its sale, Satyam
yesterday sought CLB's permission to conduct a public auction
for induction of a strategic investor and get the funds needed
to ensure its uninterrupted operations.

The company also warned that many of its key clients and
staff have threatened to quit due to the firm's financial
troubles and therefore, it urgently needed fresh capital.

Those having evinced interest in acquiring Satyam include
engineering major L&T, B K Modi group and Hindujas. PTI KRH