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Hyderabad, Dec. 18 As part of its plan to restore the investor confidence, Satyam Computer Services has decided to go for a buyback later this month.

The company, whose scrip received a drubbing in the last two days following the aborted move to acquire Maytas Properties and Maytas Infra, has convened a board meeting on December 29 to discuss the size of the buyback offer.

The meeting would also take stock of the crisis and the measures to tide over it.

Mr B. Ramalinga Raju, Chairman of Satyam, had said that the company had started a series of meetings with many of its key stakeholders. This was to correct to the perceptions created about the company in the last two days.

Mr Srinivas Vadlamani, Chief Financial Officer, said that the buy-back offer followed the company’s decision to drop the idea to acquire the infrastructure and real-estate companies.

“We have called a board meeting on December 29 to consider the proposal for buyback of shares,” he said.

He, however, did not indicate whether the company would go for an open offer or take a market purchase route. The market seems to have responded positively to the buyback move. Reversing a slide, the scrip ended at Rs 169.35 on Bombay Stock Exchange, gaining 7.5 per cent.

Meanwhile, the company’s compensation committee had allotted 16,348 shares under stock option plan.

Mr Ramalinga Raju, meanwhile, has written to about 50,000 of its employees across the globe, defending strongly his plans to diversify into the infrastructure sector.

Stating that he shared their disappointment that the recent developments had caused, he appealed to them to come out with ideas to restore Satyam’s full glory “as quickly and as effectively as possible.”

While assuring that Satyam would remain fully committed to the IT services business, he asserted that the company wanted to tap the huge opportunities in the infrastructure sector in which he was personally familiar with.

“The proposed acquisition of Maytas was part of our strategy to increase Satyam’s market diversification and secure the company’s position as a leader in urban infrastructure, construction and asset development,” he said.

The result would have been a more stable situation for our associates and a higher, more reliable return on investment for our investors, he said.

More Stories on : Buyback | Software | Stocks | Satyam Computer Services Ltd

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