Immediately after Raju’s, the
existing board members were replaced with new temporary board members were
appointed and they started working towards a solution that would prevent the
total collapse of the firm. The Board’s goal was “to sell the company within
100 days”. To devise a plan of sale, the board met with bankers, accountants,
lawyers, and government officials immediately and worked diligently to bring
stability and confidence back to the company to ensure the sale of the company
within the 100-day time frame. To accomplish the sale, the board hired Goldman
Sachs and Avendus Capital and charged them with selling the company in the
shortest time possible.
By mid-March, several major
players in the IT field had gained enough confidence in Satyam’s operations to
participate in an auction process for Satyam. The Securities and Exchange Board
of India (SEBI) appointed a retired Supreme Court Justice, Justice Bharucha, to
oversee the process and instil confidence in the transaction.
On 13 April 2009, via a formal public
auction process, a 46% stake in Satyam was purchased by Mahindra
& Mahindra owned company Tech Mahindra, as part of its diversification
strategy. The winning bidder, Tech Mahindra, bought Satyam for $1.13 per share less
than a third of its stock market value before Mr. Raju revealed the fraud and
salvaged its operations.
Effective July 2009, Satyam
rebranded its services under the new Mahindra management as “Mahindra
Satyam”. After a delay due to tax issues, Tech Mahindra
announced its merger with Mahindra
Satyam on 21 March 2012, after the board of two companies gave the approval.
The companies are merged legally on 25 June 2013.
The stock has again stabilized
from its fall on November 26, 2009 and, as part of Tech Mahindra, Satyam is
once again on its way toward a bright future.