Government allows Satyam to increase foreign equity to 40%
Satyam can increase foreign equity to 40%
02-03-2000 20:40:56
The Industry Ministry has approved 31 foreign investment proposals worth Rs4.02bn. "Murasoli Maran, Minister of Commerce and Industry, has approved 31 cases of foreign direct investment of about Rs4.02bn, based on the recommendations of the Foreign Investment Promotion Board (FIPB)," a government statement said.
The government also approved an investment proposal by Satyam Computer Ltd worth Rs72.8mn ($1.67mn) to increase its foreign equity to 40% as against the earlier limit of 27.05%.
In another development, Satyam Computer Ltd, is said to have bagged orders worth $60mn from two major overseas companies. While one is said to be an engineering and services giant, the other is reportedly a US-based Insurance company, State Farm Insurance Co.
The order from the engineering giant is estimated at $45mn spread over a period of two to three years. State Farm Insurance Co is said to have placed orders worth $15mn to be executed within one year.
During Q3FY00, Satyam?s sales jumped 76.9%yoy to Rs1776.3, PAT reached Rs361.9mn, up 82.7%yoy from Rs198.1 during Q3FY99. Operating margins fell from 39.4% during the corresponding quarter last year to 36.9% during the current year. Operating margins of the company dropped to 37% during Q3FY2000, compared to 39.4% during Q3FY99.
The government has also allowed U.S. firm Sunrider International to invest Rs1.18bn to set up a wholly owned subsidiary to manufacture and market herbal-based nutritional and personal care products. Infinity Technology Trustee Pvt Ltd was also allowed to invest Rs1.07bn, the government said in the statement.
Source: Reuters |
