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Satyam Computers Fate to be Decided by April

DUBAI — Indian regulators expect to line up a buyer for scandal-stricken Satyam Computer Services Limited by the end of April, a member of the company’s board said on Wednesday.

Official guidelines and rules for a strategic investment in Satyam are being finalised and will be made public when cleared by Securities and Exchange Board of India, Satyam board member T.N. Manoharan told
 Khaleej Times while on a business trip to Dubai.

He said a transparent, competitive and fair bidding process is being carried out to find a strategic investor
 for the company.

“The bidding process, subject to approval of guidelines and rules by the regulator, is expected to complete by the end of April,” he said.

The Indian information technology firm is struggling to restore the confidence of investors since its founder and chairman Ramalinga Raju quit on January 7, saying profits had been overstated for years and assets falsified. Indian government appointed a three-member board to run the affairs of the company and find a strategic investor for fraud-hit outsourcer.

Manoharan said the company’s client base is intact despite the crisis and the board is taking all necessary steps to restore the confidence of its associates and individual investors.

“Our customers base in Asia-Pacific, Middle East and Africa remains intact and the company is getting new orders and renewing existing contracts after initial setbacks,” he said.

The company’s operations continue as usual in the Middle East and other parts of world, he said.

“We have not reduced staff and curtail business and infect looking for new opportunities in the region,” said Manoharan, a former president of the Institute of Chartered Accountants of India.

“The crisis has no serious impact on the company’s operations in the region,” he said.

Satyam Computers serves close to 200 customers across the Middle East region and has seen tripple digit year-on-year growth in most GCC countries. It added five high profile customers and tripled Middle East revenues in second quarter of financial year 2009 compared to same quarter in previous year.

The Middle East accounts for almost three per cent of the global revenues of the company and remains a focal point in the company’s future expansion period. The UAE contributes about 40 per cent of Middle East revenues for Satyam Computers. The company expects increasing demand in banking, retail, manufacturing, oil and gas sectors to drive its growth in the country.

“The UAE in general and Dubai in particular have lot of potential for business despite the global recession and we are looking for new opportunities to expand operations here,” Manoharan said.

muzaffarrizvi@khaleejtimes.com