Tech Mahindra raises Rs 875 cr debt to fund Satyam acquisition

Tech Mahindra Ltd, the highest bidder for Satyam Computer Services, has raised Rs 875 crore from debt securities to help fund the acquisition of the beleaguered IT firm.
     
Sources said the company sold Rs 300 crore each of four and five year bonds carrying coupon rate of 10.25 per cent and about Rs 275 crore of one year bonds at 8.5 % rate. So, while the company raises Rs 600 crore through sale of bonds, it has garnered Rs 275 crore via short-term debt.
    
Tech Mahindra, which has to arrange Rs 2,990 crore to fund the deal, has already Rs 700 crore cash available on its balance sheet. The remaining amount will be arranged through internal accruals, sources said.Kotak Mahindra Bank, which managed the Satyam acquisition, was the arranger of the issue.

Tech Mahindra secured control of Satyam ,the erstwhile fourth largest software exporter, which is at the centre of India’s biggest fraud inquiry for Rs 2,899 crore, after edging out the company’s biggest shareholder L&T and US billionaire Wilbur Ross