The losing contestants for control of Satyam Computer Services Ltd may crib about lack of transparency about the bidding process, but everybody else – from jailed Satyam founder Byrraju Ramalinga Raju to Prime Minister Manmoron Singh - is impressed that the issue has been resolved quickly, as the controlling interest in the company was picked up by Tech Mahindra.
In Mumbai Monday, the prime minister expressed satisfaction at the manner in which the whole episode was handled, saying, "I am confident that our regulatory system has the resilience and strength to ensure that no such Satyams ever take place."
Disgraced founder Ramalinga Raju, in a message though his wife Nandini, expressed satisfaction and happiness that Tech Mahindra emerged the highest bidder to acquire the beleaguered IT company, which he had defrauded to the extent of over Rs7,000 crore.
Raju is lodged in Hyderabad's Chanchalguda jail under judicial custody since 10 January and faces investigation by multiple agencies including the Central Bureau of Investigation, the Securities and Exchange Board of India, and the Company Law Board. He is charged with criminal conspiracy, criminal breach of trust, cheating, forgery and falsification of accounts.
S Gopalakrishnan, one of the six co-founders and currently managing director and chief executive of rival IT firm Infosys, also expressed approval. "It is commendable that the government-appointed board at Satyam has been able to bring a closure to the uncertainty surrounding Satyam's future," he said in a statement.
"The government has addressed the issue quickly and responsibly. Overall, it is a good thing that the issue is put behind us," he added.
Federation of Indian Chambers of Commerce and Industry president Harshpati Singhania said, "This is probably one of the fastest cases where there has been a change in ownership through a structured process. The smooth completion of the bidding process for Satyam demonstrates that India has an adequate legal and institutional mechanism for handling and resolving major corporate crises."
The Associated Chamber of Commerce and Industry of India commented, "Satyam will move towards stabilisation, its market value will get stabilised, benefiting both its clients, employees and all stakeholders."
The development has also come as a big relief for Stayam's 48,000 workforce and 300,000 shareholders, apart from several high-profile investors.
"The agony of wondering about what lies ahead is over. The past three months were horrible," a Bangalore-based Satyam employee reportedly said.
The government-appointed six-member board met in Mumbai on Monday morning to select the strategic investor. Two directors, Deepak Parekh and S B Mainak, abstained from the decision to select Tech Mahindra. Parekh sits on the board of parent Mahindra and Mahindra, while Mainak is the executive director and a significant shareholder of rival bidder Larsen & Toubro.