Satyam Computer Services today announced that it has submitted a letter to the Securities and Exchange Board of India (Sebi) relating to a slight modification in the bidding process to be followed by the company to select an investor.
Accordingly, the board and Justice SP Bharucha will open the sealed financial bids submitted by the shortlisted qualified bidders whose technical bids have been found satisfactory and rank them based on price only.
Earlier, there was no ranking of the bids. If there is no bid which is at least 90 per cent of the highest bid, then the highest bidder would be declared as the successful bidder.
If one or more financial bids are at least 90 per cent of the highest bid, the board would treat the highest bid as the floor price and conduct an open auction by asking the highest bidder and those bidders whose bids are at least 90 per cent of the highest bid, to raise their bids.
Earlier, the board was to call an additional round of sealed financial bids on the same day from the highest bidder and from those whose bids were at least 90 per cent of the highest bid. In case of a tie in the second round, it was proposed to call for subsequent rounds of bids among the tied qualified bidders until the tie was broken.
If none of the bidders raise their financial bids, pursuant to the open auction conducted, then the highest sealed bid received, shall be declared as the successful bid. If the bidders, as present for the open auction, raise the bid value, then the highest bidder in the open auction shall be declared the successful bidder. Before the change, the highest qualified bidder from the second round of sealed financial bids would have been declared as the successful bidder.
The mechanism for conducting open auction will be notified to bidders separately.
