Satyam signs new contracts as SEBI clears preferential issue hurdle

25 February 2009

Satyam Computer Services has announced the signing of contracts worth over $250 million and said that efforts to restore stakeholder confidence and ensure business continuity have been extremely successful.
 
Satyam also received the go-ahead for stake sale with the Securities and Exchange Board of India (SEBI) easing pricing norms for preferential allotment of shares for companies in distress.

The market regulator said the normal rules on pricing of preferential share issues would not be applicable to companies that have been granted specific exemption.

Preferential allotment of shares are usually priced at an average of a company's stock value over six months, or two weeks, whichever is higher.

The regulator said this rule would not be applicable to a company where the SEBI board had granted relaxation for "substantial acquisition of shares and takeovers".

Sataym computer also announced that it has received fresh contracts worth over $250 million since 7 January, when Satyam's accounting problems came to light.

''Associates' dedication and the tireless efforts of the board have helped Satyam win new purchase orders and extensions totaling more than $250 million," Satyam chief executive AS Murty said.