BS Reporter / Chennai/ Hyderabad Feb 20, 2009, 00:05 IST
Scam-tainted Satyam Computer Services has lost its value with customers moving out of the company, according to Phaneesh Murthy, chief executive of the US-based iGate Corporation.
“The process has taken time, customers have moved out and Satyam has lost its value. We have lost interest in buying the company,” Murthy told Business Standard.
When pointed out that the Satyam board had maintained that key customers continue to engage with the company, he said he had information that customers were moving out.
Last month, iGate said it would be interested in buying Satyam and that it was in talks with private equity firms for possible funding of any deal, joining other potential bidders like Larsen & Toubro.
iGate, an outsourcing solutions provider, is currently expanding its footprint in India. It added a new 66,000sft facility in a special economic zone at Hitec City here on Wednesday. The Rs 10-crore facility has a capacity to seat over 500 employees.
Murthy said the company was creating an additional space of 120,000 sft in Bangalore at a cost of about Rs 60 crore and 65,000 sft in Chennai involving an investment of Rs 12 crore. The Bangalore facility would have an additional seating capacity of 1,000 people while the Chennai centre would be able to accommodate 600 more employees.
iGate would also be scaling its existing ERP Centre of Excellence in Hyderabad to cover manufacturing and logistics, and banking verticals.
Despite recession, Murthy is hopeful that his company would do well. The company registered revenues of $218.8 million in 2008 and ended the year with 6,600 employees.
Phaneesh Murthy first of all has no value after his own famous coverup couple of years back. It is better if he can mind his own business rather than commenting on other business
All these are media speculations. Satyam is in very good position.
Satyam bagged 1250 millions USD purchase orders from January 7th.
Recently, Satyam bagged a big project. 98% business projects are in progress. ALL deliverables are delivering with 100% quality and dedication.
These are motivated comments along with wild speculation in ET and ToI that is causing unnecessary problems for Satyam. At a time when the company is tryng to retain contracts these guys seem to be hell bent one damaging the co.. further. In any case IGate is a pygmy compared to Satyam and would be equivalent of one VBU of Satyam...let Phaneesh first save his company in the recession...then we will see.
Who is Mr. Murthy . His ADR value is $2 where as Satyam's ADR is 1.5 after the troubled times. Remember it was above $20 before the scandal news. But the real value of Satyam is well above Mr. Murthy's Igate. He is not a player to buy Satyam as a whole.
Mr.Murthy do not have the guts to buy Satyam as a whole. He is eying only at parts of Satyam which is not allowed by the current Board. So it's his face saving comments. As everybody knows Igate is not a player . Igate does not have the talent as Satyam have it today. Let him wait and see in the months to come. I predict that Satyam will turn into a better and respected company in the future.
Posted by: bishnujit
March 22 , 2009, 14:56 IST
Yes. Its really true that Satyam has lost value.iGate hav that much of fund to buy satyam now more than two times.But can u people tell me, will u buy a rotten potato from market? Always its better to start something new rather than buying scraps like Satyam.
As per my knowledge, only few clients left satyam. Only two major clients left.Satyam employees expressed their 100% truth with customers and 99.99% folks are continuing in the projects.
Is Murthy giving these kind of statements to get the Satyam with lower rate? In general, before acquiring properties, they will express non interest in media. But, they will buy. Is it same thing going to happen in Murthy's case also ?
Let me keep fingers crossed until final figure comes into picture.
Thanks,
Anka.
Smart move by Mr. Murthy. Never had the money or the guts to buy Satyam, but rode the media wave to hog the some of the reflected glory of Satyam to announce to the people that iGate was a top notch player, when in fact it wasnt. I do not know how two or three clients leaving brings the value down. What i also do not understand is what kind of a business leader is he when he can't gauge that client and people will leave. Any idiot would know that with what Satyam has gone thru.
Hats off too Mr murthy. Come on mr murthy stop living on reflected glory.
Thank you Mr.Phaneesh Murthy. No clients have moved out of Satyam except two. Please take care of your company and we know how to go ahead with Satyam.
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