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Business News/ Companies / Tech Mahindra raising money for Satyam buy
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Tech Mahindra raising money for Satyam buy

Tech Mahindra raising money for Satyam buy

Sale process: The headquarters of Satyam Computers in Hyderabad. Mahesh Kumar A / APPremium

Sale process: The headquarters of Satyam Computers in Hyderabad. Mahesh Kumar A / AP

Mumbai: With just five days left to deposit Rs1,756 crore for 31% stake in Satyam Computer Services Ltd, Tech Mahindra Ltd is raising money from banks, mutual funds and insurers by selling non-convertible debentures (NCDs) and commercial papers (CPs).

Tech Mahindra plans to raise Rs875 crore through NCDs and CPs, people familiar with the developments said on condition of anonymity.

Sale process: The headquarters of Satyam Computers in Hyderabad. Mahesh Kumar A / AP

The people said state-owned Corporation Bank plans to subscribe to Rs100 crore of NCDs, while private sector lender Yes Bank Ltd will pick up about Rs150 crore of the debentures.

Private insurers Kotak Mahindra Old Mutual Life Insurance Ltd and Birla Sun Life Insurance Co. Ltd have subscribed to Rs25 crore each, they said. State-owned Life Insurance Corp. of India is also one of the subscribers, but the figure is not known yet. From the mutual funds, ICICI Prudential Asset Management Co. is said to have subscribed to Rs150 crore. The firm declined comment on the matter. UTI Mutual Fund is considering subscribing to Rs100 crore but is yet to decide whether to buy NCDs or CPs, the people said. Reliance Mutual Fund is believed to have subscribed to one-year CP of Rs275 crore, they said.

cnbc@livemint.com

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Published: 17 Apr 2009, 12:45 AM IST
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