According to the latest information available, B K Modi's Spice Corp has submitted the Expression of Interest (EoI) for acquiring a majority stake in the fraud-hit Satyam Computer Services. The company has also submitted the proof of availability of Rs 1,500-crore cash.
Tech Mahindra has also put in its EoI and a proof of availability of Rs 1,500 crore in cash for acquiring a majority stake in Satyam Computer. While the other bidders had the requisite money, Tech Mahindra had less than Rs 100 crore as cash on its books. It, therefore, secured a line of credit for Rs 1,500 crore from five banks - SBI, IDBI, Kotak Mahindra Bank, HSBC and PNB to back its expression of interest (EoI).
If required, parent firm Mahindra & Mahindra may also infuse part of the money for the bid. Though Tech Mahindra has submitted a solo bid, reports suggest that it may tie up with a private equity player to make the final bid.The deadline for the bidders expired at 5 pm today.
IGate Corporation has, however, opted out of the race. It said in a statement on Friday evening that they would withdrwa from the race. This decision is based on further analysis of the bid, IGate said.
Satyam Board is meeting in Hyderabad for two days to decide on the shortlisting of bids. The shortlisted bidders will be given financial and legal data to submit the final EoI.