Satyam Infoway to sell warrants to parent, CDC
Harshad Oke
MUMBAI 23 OCTOBER
INTERNET service provider Satyam Infoway will be selling warrants representing equity shares to parent Satyam Computer Services and UK-based Commonwealth Development Corporation.
Satyam Computer will be eligible to buy 1,50,000 shares and CDC 6,00,000 shares. The shares will be issued to the two companies at a 66 per cent discounted price of $11.8 per share.
Speaking to The Economic Times, R Ramraj, managing director, Satyam Infoway said, "They will be buying the shares from us as per our original agreement. Satyam Computer will be getting lesser number of shares because they were the original at-par investors, while CDC invested at a premium."
Earlier, Satyam Infoway listed its American Depository Shares on the NASDAQ exchange. The company issued 4.175 million fresh shares at a price of $18 per share.
The $75m that Satyam Infoway raised through its Nasdaq listing will be utilised for the company?s forthcoming capital expenditure plans. The company is also setting up its international connectivity gateways to facilitate its Internet business.
It is also believed that the company will be going in for multiple gateways to offer a country-wide connectivity network.
To begin with, Satyam Infoway plans to go in for a satellite-based gateway network.
Gateway apart, Satyam will be using the money from the ADS issue to expand its network. Currently, the company has a presence in 27 locations which is expected to be expanded to 40 cities over the next six months. At a local level, Satyam Infoway is expanding its ATM (asynchronous transfer mode) switch network to offer better connectivity.
Source: Economic Times |
