Satyam, update, Hindujas, and, M&M, join, race

Satyam Computers emerged from the uncertainty around it and is worth $800 millon on the current valuations.  Many companies know that it would take 5 years to build a company like Satyam Computers.

Though there are questions about the company’s financial’s there is no question about the company’s capability. That is the reason why as many as 6 companies are ready to buy a part or whole of it.

The companies in the race :

1. iGate : Expressed its interest openly and is looking for a merger of sorts
2. L&T : Seems to be the front-runner for acquiring Satyam. L&T has its own IT division called L&T Infotech which as per the analysts will never reach the Satyam’s levels. That along with its stake of 12% are tilting the scales towards L&T.
3. Hinduja group : The latest entrant into the race. Has $100 mn cash and are willing to put more money into Satyam.
4. Spice Group : BK Modi’s Spice Group is rich with cash after its recent stake sale in Spice Communications to IDEA. Modi is looking for a 51% stake in the company.
5. Mahindra Group : It has its own interest in the IT space. TechMahindra is the IT arm of the Mahindra group and Satyam would be a prize possession for the group.
6. HCL : There will be no looking back for HCL if it gets a hold of Sataym HCL is the number 4 software exporter in India right now.

Fidelity has picked up a stake of 3.13% and increased its stake to 6.79%. It is now the second largest shareholder in the company after L&T. LIC holds 4% stake in the company. The stake of Fidelity is strategic in nature and no buyout is expected.

How are we doing on the business side? Well, 4 clients have left Satyam so far and it has added 15 new deal so far. That is real good news and a tremendous boost for the company. Besides, the companies are finding it difficult to leave the vendors as it is not a plug and play.

There is a equally opposing opinion in the Gartner report which says that Satyam in its current form will not exist in 2010. The report was published before the news of 15 new contracts was announced. So, read that with a pinch of salt. Source