CLB approves Satyam capital expansion

Satyam Computer Services stake sale plan has been approved by the Company Law Board (CLB). It has also approved the expansion of its share capital base to Rs 2.8 billion. Satyam is expected to sell 26% to a strategic partner and will issue another 600 million shares at a face value of Rs 2.

The board has authorized an open competitive price bidding to instruct a strategic partner. It wants the process to be transparent. A retired Supreme Court judge has been inducted by the CLB to oversee the strategic partner induction.


The preferential allotment will be made either at par or at premium and have instructed that the share base should be increased under Section 17 and Sec 81 IA of the Company's Act, as per CLB.


Shares of the company declined Rs 2.3, or 4.74%, to settle at Rs 46.25. The total volume of shares traded was 7,938,382 at the BSE (Thursday).