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How Tech Mahindra won the Satyam bid

April 13, 2009

Sources said that Tech Mahindra offered Rs 58 per share for the Satyam bid, while engineering firm L&T made an offer of around Rs 49 for each Satyam share. This is however yet to be confirmed.

Pursuant to the Share Subscription Agreement, Tech Mahindra has agreed to subscribe to and acquire 30,27,64,327 shares of the company, representing thirty one percent (31%) of the share capital of the company after giving effect to the issuance of the initial shares (the 'enhanced share capital') at a price of Rs. 58 per share (the 'preferential allotment') thereby agreeing to infuse Rs 1,756 crore (or approximately $351 million based on the exchange rate of Rs 50 to the dollar) -- the 'initial subscription amount' -- into the company.

The $7 billion engineering and construction giant, Larsen and Toubro, having earlier acquired a 12 per cent stake in Satyam Computer Services, lost out to Tech Mahindra in the race to buy out Satyam.

Image: Anil Naik, CEO and Managing Director of the Indian engineering and construction conglomerate, Larsen and Toubro. | Photograph: SK/CC/Reuters