Mahindra Satyam
business consulting and outsourcing services |
Mahindra Satyam (formerly Satyam Computer Services Limited) was an Indian information technology (IT) services company based in Hyderabad, India, offering software development, system maintenance, packaged software integration and engineering design services. Satyam Computer Services was listed on the Pink Sheets, the National Stock Exchange and Bombay Stock Exchange and provided services to a wide range of customers including 185 Fortune 500 companies.[1]
In January 2009, the company's founder and chairman Ramalinga Raju admitted of inflating the company's assets by $1 billion, leading to criminal charges and a collapse of the company's stock price.[2][3] This was known as Satyam Scandal. Mahindra Group's IT arm, Tech Mahindra, purchased a major stake in the company and in June 2009 the company renamed itself Mahindra Satyam.[4] Mahindra Satyam merged with Tech Mahindra on 24 June 2013.[5]
History
Satyam Computer Services was founded in 1987 and by 2008 earned revenues of over $2 billion, employing 52,000 IT professionals across the world.
Tech Mahindra announced its plan to
A new management structure was announced for the new entity, led by Anand Mahindra as Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnani as the CEO and Managing Director.[19][20][21] The merger was announced to be complete on 25 June 2013, creating India's fifth largest software services company with a turnover of US$2.7 billion.[22][23] Mahindra Satyam shareholders received two shares of Tech Mahindra stock for every 17 shares of Mahindra Satyam stock they owned.[24] Shares in the new entity began trading on 12 July 2013.[25][26]
On 24 July 2013, a division bench of Andhra Pradesh High Court admitted a petition filed by Ekadanta Greenfields and Saptaswara Agro Farms challenging the Mahindra Satyam-Tech Mahindra merger order.[27] The two firms argued that their objections to the merger had not been considered in full.
Finances
After the scandal hit, the company's revenue collapsed and the new chairman, Vineet Nayyar, suggested that a turnaround would take three years.[28] By the April–June quarter of 2011, the company was profitable once again.[29][30] In 2013 Mahindra Satyam declared a 30% dividend. Nayyar commented "The turnaround of Mahindra Satyam is symbolically and practically complete. The merger (with Tech Mahindra), which is in its penultimate phase, will open a new chapter for the company. We thank all stakeholders for supporting us during this crucial phase".[31][32]
Controversies
Tax evasion
Before the asset inflation scandal hit, the
Maytas acquisition
In December 2008, Satyam founder B. Ramalinga Raju made a final attempt to conceal his falsification of the Satyam Computer Services balance sheets by acquiring
Accounting scandal
On 7 January 2009, Chairman
In 2015, Raju was sentenced to seven years in jail and fined about $800,000.[2]
See also
References
- ^ ISSN 0261-3077. Retrieved 22 September 2019.
- ^ a b c d Balachandran, Manu. "The Satyam scandal: How India's biggest corporate fraud unfolded". Quartz India. Retrieved 22 September 2019.
- ^ Scott, Mark (21 March 2012). "Tech Mahindra to Merge With Satyam". The New York Times. Retrieved 22 September 2019.
- ^ a b "Satyam Computers is now Mahindra Satyam". Hindustan Times. 21 June 2009. Retrieved 22 September 2019.
- ^ Alvares, Clifford (15 October 2013). "Tech Mahindra goes for growth by acquisition". Business Standard. Retrieved 22 September 2019.
- ^ "Satyam: Just what went wrong?". Rediff. Retrieved 22 September 2019.
- ^ a b Sangani, Priyanka (5 April 2019). "How the Satyam takeover episode taught Tech Mahindra many valuable business lessons". The Economic Times. Retrieved 22 September 2019.
- ^ "SEC Charges Satyam Computer Services With Financial Fraud". sec.gov. Retrieved 22 September 2019.
- ISSN 0971-751X. Retrieved 22 September 2019.
- ^ Kumar, John Satish (21 March 2012). "Tech Mahindra, Satyam get nod to merge". LiveMint. Retrieved 22 September 2019.
- ^ Mahindra Satyam-TechM to take 150 top leaders to Bangkok Archived 15 March 2014 at the Wayback Machine
- ^ High Court orders shareholders' meeting on MSat-Tech Mahindra merger
- ^ Mahindra Satyam shareholders approve merger with Tech Mahindra
- ^ "Mah Satyam, Tech Mahindra merger may be delayed". Moneycontrol. 4 February 2011. Retrieved 22 September 2019.
- ^ Mah Satyam-Tech Mah to appoint bankers to fasten merger. Moneycontrol.com (30 August 2011). Retrieved 2013-09-23.
- ^ Mahindra Satyam, Tech Mahindra merger gets AP High Court's nod – Times Of India. The Times of India. (11 June 2013). Retrieved 2013-09-23.
- ^ Andhra Pradesh High Court clears merger of Mahindra Satyam with Tech Mahindra – Economic Times. The Economic Times. Retrieved 2013-09-23.
- ^ "Satyam merger on course". The Telegraph, India. 6 December 2013. Retrieved 22 September 2019.
- ^ M-Satyam, Tech Mahindra hope to merge in four weeks : Market, News – India Today. India Today.intoday.in (11 June 2013). Retrieved 2013-09-23.
- ^ Will complete Tech Mah, Satyam merger in 8 weeks: Nayyar. Moneycontrol.com (11 June 2013). Retrieved 2013-09-23.
- ^ MSat-Tech Mahindra merger gets court nod. The Hindu (11 June 2013). Retrieved 2013-09-23.
- ^ "Mahindra Satyam merges with Tech Mahindra; becomes 5th biggest IT firm". Zee News. 25 June 2013. Retrieved 22 September 2019.
- ^ "Tech Mahindra, Satyam Computer complete merger". Moneycontrol. Retrieved 22 September 2019.
- ^ "Satyam is no more; to live on as part of Tech Mahindra". Business Standard. Press Trust of India. 14 July 2013. Retrieved 22 September 2019.
- ^ Tech Mahindra completes share swap, issued capital goes up – Rediff.com Business. Rediff.com. Retrieved 2013-09-23.
- ^ Tech Mahindra completes share swap – The Times of India. The Times of India. Retrieved 2013-09-23.
- ^ Kurmanath, K. V. "Two firms appeal against TechM, Mahindra Satyam merger order". @businessline. Retrieved 22 September 2019.
- ^ indiaearnings.moneycontrol.com
- ^ Press Trust of India (9 August 2011). "Mahindra Satyam reports Rs 225-cr profit in Q1 – NDTV Profit". Wayback Machine. Archived from the original on 4 October 2011. Retrieved 22 September 2019.
- ^ Mahindra Satyam Q2 net soars; Europe crisis a worry. Moneycontrol.com (11 November 2011). Retrieved 2013-09-23.
- ^ Mahindra Satyam quarterly net profit down by 15%, sets dividend at 30% Archived 27 September 2013 at the Wayback Machine. Financialexpress.com (17 May 2013). Retrieved 2013-09-23.
- ^ Mahindra Satyam Q4 net down by 15%, declares 30% dividend. Zeenews.india.com. Retrieved 2013-09-23.
- ^ a b "Mahindra Satyam gets attachment order from I-T dept – Latest News | Gadgets Now". Gadget Now. 3 February 2012. Retrieved 22 September 2019.
- ^ "Mahindra Satyam says HC has stayed I-T order to attach co assets – The Economic Times on Mobile". The Economic Times Mobile. 23 February 2012. Retrieved 22 September 2019.
- ^ Reddy, Ch. Prashanth; Mohan, B. Krishna (3 December 2009). "Raju pressured Satyam board". Rediff. Retrieved 22 September 2019.
- ^ "Centre refers Satyam deal to ROC | Hyderabad News – Times of India". The Times of India. Ist. 20 December 2008. Retrieved 22 September 2019.
- ISSN 0971-751X. Retrieved 22 September 2019.
- ^ Mishra, Bibhu Ranjan (18 December 2008). "Satyam clients likely to re-evaluate contracts". Business Standard. Retrieved 22 September 2019.
- ^ "Satyam investors lose Rs 3300 cr in a day". Mumbai: NDTV Convergence. 17 December 2008. Archived from the original on 20 December 2008.
- ^ "Fourth independent director M Rao resigns from Satyam". The Economic Times. 29 December 2008. Retrieved 22 September 2019.
External links
- Official website
- The Official Corporate Website for Satyam Computer Services
- Mahindra Satyam repositioned as an ICT firm
- Are there more Satyam's in making?
- BusinessWeek profile
- The rise and fall of Satyam
- Raju's Statement – Scanned Copy – "Satyam CEO's Letter to its board of directors" – Hyderabad, India, 7 January 2009
- Merger of MSAT and TechM (2011). Merger of IT Companies (Documentary). India: Moneycontrol.com.