Satyam Computer Services is planning its much-awaited American Depository Share issue some time in mid-November, company sources told Business Standard yesterday.
While the company has appointed Merril Lynch as the manager to the issue, the premium at which the shares are being offered is yet to be decided. Satyam share is currently quoted at Rs 497 (face value Rs 2 ) in the Indian exchanges.
The Cabinet Committee for Economic Affairs had cleared the issue earlier this week for a limit of $310 million. While Satyam has not yet disclosed the size of the proposed issue, the special resolution had authorised the company to raise up to 5 per cent of the paid-up share capital by American Depository Share issue.
The additional funds are to be used for mergers and acquisitions, joint ventures and strategic alliances, both in India and abroad.