Tech Mahindra ties up Tata Capital, IDFC funds for Satyam

Tech Mahindra ties up Tata Capital, IDFC funds for Satyam
PTI
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First Published: Wed, Jun 10 2009. 02 17 PM IST
Updated: Wed, Jun 10 2009. 02 17 PM IST
New York: Tech Mahindra has raised Rs550 crore from Tata Capital and IDFC to fund its takeover of scam-hit Satyam Computer.
Tech Mahindra raised these funds by issuing debentures which are convertible into shares of Venturbay Consultants, through which it acquired Satyam Computer.
Besides, Tech Mahindra has also borrowed Rs1,450 crore from various banks, mutual funds, institutions and NBFCs at an interest rate of 10%, part of which has been used for funding the acquisition of Satyam.
Disclosing Tech Mahindra’s source of funds for the deal, a regulatory filing by the beleaguered IT firm here said the funding was from “internal resources, optionally convertible domestic debt, equity by Tech Mahindra in Venturbay and debt extended by Tech Mahindra to Venturbay.”
In the first phase of acquisition, Tech Mahindra had paid about Rs1,756 crore for 31% equity through preferential allotment of shares in Satyam which is also listed at NYSE besides Indian bourses.
The filing with the US market regulator SEC said here that “Tech Mahindra has infused funds in Venturebay by using cash on hand” in connection with the initial 31% stake purchase and the subsequent Rs1,129 crore open offer for further 20% equity.
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First Published: Wed, Jun 10 2009. 02 17 PM IST