BANGALORE, August 25: Hyderabad-based
Satyam Computer Services Ltd. has approached financial institutions,
including Unit Trust of India, Life Insurance Corporation and General
Insurance Corporation, to place shares worth around Rs 350 crore on a
private placement basis. Top-level institutional sources said that the
company has made the offer but the FIs are yet to decide whether to take
it up or not.
FIs are looking at a 10-15 per cent
discount, while the Satyam management is offering these shares at a
"market-related price". According to them, since the placement
will be of cum-bonus shares, each Satyam share would be worth around Rs
1,900 on a cum-bonus basis. The scrip is trading at an ex-bonus price of
Rs 942 and the company has announced a 1:1 bonus. However, FIs are looking
at a price band of Rs 1,600-1,650 per share.
Before launching its American Depository
Receipts issue, planned for the first quarter of next year, the company
plans to utilize the funds raised to pay off loans and become debt-free.
As per the latest accounts, Satyam has unsecured loans amounting to Rs
242.3 crore and secured loans of Rs 6 crore.
At its last annual general meeting,
Satyam had received shareholder approval to issue or offer equity shares
or equity-linked securities with or without voting rights. The company has
an approval to issue such shares or equity-linked instruments not
exceeding a value of $150 million or 15 per cent of the paid-up share
capital.