Tech Mahindra raises Rs 600 cr debt for Satyam

Software firm Tech Mahindra, which needs to pay Rs 1,756 crore (Rs 17.56 billion) by April 21 for acquisition of a 31 per cent stake in scam-hit Satyam Computer, on Saturday said it has raised Rs 600 crore (Rs 6 billion) of debt through issuance of bonds.

It alloted 6000 non-convertible debentures of face value of Rs 10 lakh (Rs 1 million) each, aggregating to Rs 600 crore on April 17, the company said in a filing to the Bombay Stock Exchange.

Earlier this week, Tech Mahindra through its arm Venturbay Consultants won the race to acquire controlling stake in beleaguered IT firm Satyam Computer.

The government-appointed board of Satyam had given its approval for the acquisition of a 31 per cent stake by the Tech Mahindra for Rs 1,756 crore. The deal has also been approved by the Company Law Board, which has also asked Tech Mahindra to make the payment by April 21.

Besides, Tech Mahindra would make an open offer at Rs 58 a share for a further 20 per cent from investors.

Tech Mahindra, in which BT Group Plc owns 31 per cent, would pay an aggregate of about Rs 2,889 crore (Rs 28.89 billion) for a 51 per cent stake in Satyam.

The Company Law Board on Thursday approved takeover of Satyam by Tech Mahindra for a deal of Rs 58 per share which the company bid through auction.