CLB authorizes Mahindra Satyam to allot shares

NEW DELHI, INDIA: The Company Law Board has authorized Mahindra Satyam to allot 19,86,58,498 equity shares of Rs two each to Venturebay.

"The company (Mahindra Satyam) is authorized to issue and allot 19,86,58,498 equity shares of Rs two each at the premium of Rs 2.50 to Venturebay," a PTI report quoted CLB Chairman S Balasubramanian, as saying, allowing Mahindra Satyam's application requesting to issue equity.

Mahindra Satyam (earlier Satyam Computer) had moved the CLB after Venturebay failed to subscribe to 20 per cent of Satyam's shares from the open market.

The open offer made by Tech Mahindra to the shareholders of Satyam had made a very cold response from investors and it could get only 4,20,915 (including 268,656 shares underlying ADSs), which is less than 0.1 per cent of the outstanding shares of common stock.

The CLB also authorized Mahindra Satyam to appoint auditors to conduct audit of the company, the report said.