Intel to put $20m into Satyam's BPO arm

By SiliconIndia   |   Wednesday, 20 August 2003, 07:00 Hrs
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MUMBAI: Intel is likely to invest $20 million through its venture capital arm Intel Capital for a 20-25% stake in Satyam Computer Services’ BPO (business process outsourcing) subsidiary Nipuna.

Intel’s investment would make Nipuna the second Indian BPO firm valued at close to $100m, after Infosys Technologies’ Progeon, which was valued at $100m even before it began operations. Citigroup had acquired a 20% stake in Progeon for $20m.

Satyam Computers, in its recent filing with the Securities and Exchange Commission (SEC), said that Intel is expected to invest $20m in Nipuna in return for convertible preference shares, which can be converted to 20-25% of Nipuna’s equity share capital on a fully diluted basis. Satyam is now seeking regulatory approvals from RBI and the same are expected this week.

Intel’s investment is expected to further growth prospects for Nipuna besides giving it

access to the global market. Satyam was toying with the idea of placing 15-20% of Nipuna’s equity with global investors since September ‘02.

Set up in June ‘02 with an initial investment of $4m, Nipuna Services uses Satyam Computer Services’ customer base to tap BPO business.

Nipuna has five customers and employs 164 people. It provides processing services in the fields of human resource, finance & accounting, customer contact (including voice, mail and chat) insurance, healthcare, banking and financial services among others. (Source: ET)

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