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New Satyam board to scout for $120 Million loan
By siliconindia
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Wednesday, 14 January 2009, 01:25 IST |
3 Comments
Bangalore: After the emergence of the three-member board for Satyam Computer Services, the company will be scouting for a $120 million worth bridge finance. The finance is expected to flow in terms of credit line from the government or banking institutions at lower interest rates.
"While the $100-120 million will be just enough for a month, we will be able to tide over the remaining period through financial innovation," a senior official at Satyam told DNA. The company expects to turn around the turbulence with this amount, of which, a significant share is expected to be in dollars for the proper functioning of the abroad operations. Citing his view on the funds, sought by the software firm, V Balakrishnan, Chief Financial Officer of Infosys, said that foreign funding agencies will not come to the rescue at this point. He pinpointed that the company has to tap traditional avenues such as domestic banks and institutions to finance working capital needs. It is also believed that the role of HDFC Chairman, Deepak Parikh will be crucial for tapping funds from private equity, and private and public sector banks for the company.
The new board members, which also include former Nasscom Chief Kiran Karnik, SEBI member C. Achuthan have to deal with extended payment cycles also as its clients are asking for a 80-days credit than the usual 30-60 days.