Friday, July 10, 2009

Satyam Mahindra Allotment Of Equity Shares To Venturbay - July 10, 2009

Mahindra Satyam (the "Company" or "Satyam") announced that its board of directors ("Board") had allotted 19,86,58,498 equity shares of the Company (the "Additional Equity Shares") to Venturbay Consultants Private Limited ("Venturbay"), a subsidiary controlled by Tech Mahindra Limited ("Tech Mahindra"). Following the allotment of the Additional Equity Shares, the outstanding equity share capital of Satyam is 1,175,455,935 equity shares (including equity shares underlying ADSs) and Venturbay holds approximately 43% of the outstanding equity share capital.

As stated in the press release dated July 08, 2009, the allotment of the Additional Equity Shares to Venturbay was subject to (i) Venturbay transferring the subscription amount aggregating to Rs. 11,52,21,92,884/-(approximately $ 230 million based on an exchange rate of Rs. 50 to US (1) ("Subscription Amount") from the public offer escrow account to Satyam''s account; and (ii) fulfillment of certain closing conditions, including receipt of in-principle approvals from the stock exchanges.

The Subscription Amount has been deposited in the Company''s account and the Company expects to use such funds for its general corporate purposes.

In addition, the Company also levied in-principle approvals of the Bombay Stock Exchange Limited and the National Stock Change of India Limited Additional Equity Shares were satisfied, the Board passed a resolution to allot the Additional Equity Shares to Venturbay.

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