The Company Law Board (CLB) on Thursday (February 19) allowed the beleaguered Satyam Computer to conduct a public auction for inducting strategic investors and to raise its equity base. The CLB's approval has opened the gate for Satyam to get a new owner. Earlier, the Satyam board had made a plea to CLB to conduct a public auction. The board has asked for an owner of the IT company so as to ensure uninterrupted operations.

 

 Apart from this, the company’s board has been allowed by CLB to make allotment of preferential shares and raising the company’s equity capital by 50 percent from Rs 160 crore to Rs 240 crore. The six-member Satyam broad is chaired by Kiran Karnik. The Satyam directors have informed that many of its key clients and staff have threatened to quit due to the firm's financial troubles. The company is in great need of fresh capital, added the directors.

 

So far, major companies like L&T, B K Modi group and Hindujas have shown interest to take over Satyam Computer. Meanwhile, three former Satyam directors viz. Ram Mynampati, Krishna Palepu and Vinod Dham were notified by the CLB to disclose their assets to the board by March 31. The accused directors who were supposed to reply to CLB today (February 20) have asked for some more time.