The Securities and Exchange Board of India (SEBI) has allowed the scam-tainted Satyam Computer Services to auction its 51 percent stake. After getting SEBI's permission Satyam will be able to sell the majority of its stake to an investor which will bring back the fraud-hit firm on track. The prospective investors will require to have minimum net assets of $150 million to acquire Satyam's stakes.

 

The bidding for Satyam's stakes will include the subscription of newly issued equity shares, representing 31 percent of the company’s share capital. After this, the interested investor will make a mandatory public offer for purchasing a minimum of 20 percent of the company’s share capital. After the closure of offer period, the investor will get the right to subscribe to additional newly issued equity so that the resultant share acquisition becomes 51 percent.

 

According to a statement issued by SEBI, the investors will not be able to sell any equity shares acquired for a period of three years from the date of the acquisition. Hyderabad-based Satyam Computer Services has been making headlines since its founder B Ramalinga Raju's confession of $1.43-billion fraud. Following the financial scam, the government had replaced the entire board of Satyam.