Satyam To Offer Securities

Satyam Computer Services Ltd is planning to offer securities to raise $50 million or 5 per cent of its paid-up share capital, whichever is higher, to customers or strategic partners.

A resolution to this effect is set to be placed before shareholders at the company's forthcoming annual general meeting on May 26.

The move is a modification of a resolution passed at the company's annual general meeting last year. The present resolution mentions the securities offer "in addition to the limits specified" in the previous declaration.

The company will also seek shareholders' nod to formalise the reduction of the par value of its shares from Rs 10 per share to Rs 2. This follows a board decision on March 21 to boost the liquidity of the Satyam share and widen its investor-base.

Following the change, the company's authorised share capital of Rs 75 crore will be divided into 37.5 crore shares of Rs 2 each, against 7.5 crore shares of Rs 10 each.

The resolution, if passed, will entitle the shareholders to five equity shares of a par value of Rs 2 each for every share held. Satyam also says PricewaterhouseCooper is set to be appointed its statutory auditors, considering the company's substantial operations and its proposed issue of American depository receipts.

During 1999-2000, the company set up two foreign subsidiaries - Satyam Japan Ltd in Japan and Satyam Asia Pvt Ltd in Singapore - for marketing in the respective regions. Group company Satyam Infoway expanded its operations during the year by offering Internet access in 40 cities throughout India.