Strategic Sale of Satyam Computers

Case Studies | Case Study in Business, Management, Operations, Strategies Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR337
Case Length : 20 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Satyam Computer Services Limited, Tech Mahindra Limited
Industry : Information Technology / Software Services
Countries : India

To download Strategic Sale of Satyam Computers case study (Case Code: BSTR337) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Resurrection of Satyam Contd...

Satyam found itself in deep trouble after its founder and Chairman, B. Ramalinga Raju (Raju), on January 07, 2009, claimed that the company had been inflating the revenues and profit figures for the last several years. He confessed to an accounting fraud that amounted to Rs. 70 billion⁸.

With Raju's confession, a cloud of uncertainty hovered over Satyam. The future of over 50,000 employees and the numerous IT projects that Satyam had undertaken for companies across the world hung in the balance. At this juncture, the Government of India intervened and constituted a new board for the company.

The board immediately reassured Satyam's employees and clients, raised money for working capital, and appointed new auditors to restate the accounts.

With the approval of the Company Law Board (CLB)⁹ and the Securities and Exchange Board of India (SEBI)¹⁰, the Satyam board started on the process of identifying a strategic investor for Satyam and specified the rules and regulations for the bidding process...

Excerpts >>

8] Rs. or INR refers to Indian Rupee. As of May 19, 2009, 1 US$ ≈ INR 47.89.

9] The Company Law Board is an independent quasi-judicial body with power to monitor the conduct of companies in the purview of company law.

10] The Securities and Exchange Board of India is the regulator of securities market in India. It caters to the needs of securities issuers, investors, and market intermediaries.

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection