Satyam Computer Services is awaiting approval from the Reserve Bank of India and other agencies to formally induct Intel Capital as an investor in Nipuna Services. Intel Cap had picked up stake in the business process outsourcing subsidiary in July this year.

"We are awaiting the statutory approvals before officially announcing Intel associates' investments in Nipuna," Srinivas Vadlamani, chief financial officer of Satyam, said.

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Intel Capital and one of its associate companies are investing $20 million in Nipuna Services in the form of preferential shares that will be converted into 20-25 per cent of the company's share capital at a later date.

Announcing investments on July 24 without disclosing the name of the investors, B Ramalinga Raju, chairman of Satyam said, "We have just committed $4 million investment in Nipuna and any new investment into the company will be made through strategic investors."

According to a SEC filing, Satyam has invested over $0.2 million as on June 30,2003 in Nipuna. During the last quarter Nipuna recorded a net loss of Rs 3.26 crore (Rs 32.6 million) on a revenue of Rs 1.36 crore (Rs 13.6 million).

It can be recalled that Satyam incurred huge losses on its investments in subsidiaries in the past including a Rs 152 crore (Rs 1,520 million) investment written off on this account during the quarter ended March 2003.

It wound up a majority of its loss making subsidiaries in the last few quarters. The company is now looking at offloading its 35 per cent stake in Sify, which was its erstwhile subsidiary.