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Rediff.com  » Business » TechM gets Mahindra Satyam nod to hike stake to 42.7%

TechM gets Mahindra Satyam nod to hike stake to 42.7%

July 10, 2009 16:56 IST

The board of Mahindra Satyam cleared on Friday a proposal of Venturebay, a unit of Tech Mahindra, to hike its stake in the company (Mahindra Satyam) through a second round of preferential share allotment to 42.7 per cent.

"Satyam has stabilised. It was a normal board meeting. The main issue was allocation of shares, which is being done," Kiran Karnik, chairman, Board of Satyam, told reporters in New Delhi.

Later Mahindra Satyam said its board of directors has allotted 19.86 crore additional shares to Venturebay, which would take Tech Mahindra's stake to approximately 43 per cent of the outstanding share capital.

A Tech Mahindra spokesperson said after the preferential allotment Venturebay's stake in Mahindra Satyam would be 42.7 per cent.

Venturebay has deposited Rs 1,152 crore (rs 11.52 billion) as subscription in the company's public escrow account.

Venturebay had earlier paid Rs 1,756 crore (Rs 17.56 billion) for the 31 per cent stake in Satyam through preferential allotment.

But if all the equity options are exercised and the shares are issued, the stake would be 42.03 of the enhanced share capital, Tech Mahindra said.

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