Tech Mahindra, the firm that took over Satyam will be renaming the latter in order to woo clients again. Senior officials at Tech Mahindra felt it was necessary to restore clients’ confidence in Satyam again and this was possible only if it was renamed.
Satyam fell out after a scam that dipped its credibility as the former owner of Satyam, Mr. Ramalinga Raju had duped several shareholders. It was a major scandal and had not only national impact but also international ramifications. Now, Ramalinga Raju is faced with serious charges of corruption and is under detention.
Recently, bidding was held for the purchase of Satyam and Tech Mahindra emerged the winner. Tech Mahindra has been able to acquire 31% stake in Satyam Computers and felt its present name was akin to untruth.
The new board to be appointed by Tech Mahindra will rename Satyam and this will be done after a Company Law Board meeting is held to ratify the takeover of Satyam by Tech Mahindra.
An official of Tech Mahindra commenting on the renaming said, “I would prefer a change in name as a balancing act to draw the clients back and to maintain credibility as a new firm.”
The financial analysts of Tech Mahindra are very much concerned about the legal cases pending against Satyam, which includes class action suits related to the forgery in Satyam.
As of now, Satyam has about 48,000 employees on its rolls. One has to wait and see if there are any changes in the employment structure in Satyam.