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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4006)	4/5/1999 4:02:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Satyam mulls ADR issue, merger with three subsidiaries Our Markets Bureau in Mumbai Satyam Computer Services, the Hyderabad-based software firm, is planning to merge three subsidiaries with itself and planning a fresh issue of shares in the form of an ADR or a private placement. According to a notice given to the Bombay Stock Exchange, Satyam Computer Services Ltd will consider a merger of three subsidiaries with itself at a board meeting on April 13. The board meeting will also consider a further issue of securities either by an issue of American Depositary Receipts (ADR) or through a private placement, the BSE said. The three subsidiaries that are to be merged with Satyam Computer Services (SCS) are Satyam Enterprise Solutions Ltd, Satyam Renaissance Consulting Ltd and Satyam Spark Solutions Pvt Ltd. This was conveyed by the company in a notice to the Bombay Stock Exchange on Monday. Despite, this news, Satyam's stock price did not escape from a hammering and the stock opened Rs 120 lower than its previous close of Rs 1700 on the Bombay Stock Exchange. It touched a day's high of RS 1678 before closing at the day's low of Rs 1564.25. On the National Stock Exchange, the stock closed at Rs 1563 down Rs 135 from its previous close of Rs 1699. In its notice, Satyam Computer Services said the board meeting will consider an enabling resolution for further issue of securities by way of ADRs or private placement. The board meeting would also consider a stock option scheme for new associates. The Hyderabad-based firm had announced last week that its board was meeting on April 13 to consider a bonus issue of equity shares and finalise its results and dividend for the year ended March 31, 1999. Satyam Computer Services will be the second Satyam group company to go for an ADR. Last month, Satyam Infoway, the internet service provider had indicated plans to tap the ADR market and given a mandate to Donaldson Luffkins and Jenerette for the issue. Apart from the ISP company, Satyam Computers has recently incorporated subsidiary in the US, Vision Compass Inc. business-standard.com