The government-appointed board of Satyam Computer on Wednesday proposed raising its authorised share capital by 50 per cent to 1.2 billion equity shares. At the end of the last financial year, Satyam's authorised share capital was 800 million shares with a face value of Rs 2 each, amounting to Rs 160 crore, and 100 million convertible redeemable cumulative preferential shares of Rs 10 each aggregating to Rs 100 crore. The paid-up share capital was 674 million shares, amounting Rs 134.70 crore. Marketmen said the move would provide the company with additional shares for selling them to strategic investors.
Meanwhile, distressed IT firm Satyam said it has sought the Company Law Board's approval to conduct a public auction to induct a strategic investor and to allot preferential equity and increase its authorised capital to Rs 120 crore.