The valuations of Satyam are at the perfect level to attract suitors who are bargain hunting. The fourth-largest Nasdaq-listed IT company is valued at just Rs99,435 crore or $2 billion at current prices.

Chairman Ramalinga Raju's family held a little over 8 per cent through SRSR Holdings, while institutional investors such as ICICI Prudential, Aberdeen Asset Management and Fidelity held 60 per cent.

The company had warned the stock exchanges earlier in a filing this week that stated, "Satyam has received a communication from the promoters that all their shares in the company held by SRSR Holding Pvt Ltd were pledged with institutional lenders over a period of time since September 2006. It is possible that some of the lenders may exercise or may have exercised their option to liquidate such quantum of shares at their discretion to cover the margin shortfall. This would consequently dilute the promoters' holding in the company."

There were several unconfirmed reports about how much the promoter's stake could have fallen from the level of 8.6 per cent. However, it is clear that Rajus' stake is still above 2 per cent as it is mandatory to make a disclosure otherwise.

Who is interested in Satyam?

The Satyam story has been playing out like a whodunit. Now the question is will the promoters lose control over the company? If so, who could be the buyer for the country's fourth-largest IT firm.

The names of US-based Cognizant Technologies, and Hewlett Packard, both with a strong presence in India, are being linked as posible acquirers.

If the big three Indian software companies - TCS, Infosys and Wipro - are not in the reckoning, it would be because adding on Satyam's 50,000-strong workforce in a similar business may not be economical. Besides, Satyam is known for price undercutting and hence has a large portfolio of price-conscious customers. These customers may desert the company if the prices are raised, triggering a loss in the value of the company.

Reportedly several PE firms are also interested in investing in the company. In such a scenario the controls of the management may be retained by the promoters.

According to law, the Satyam board, on its part, can meet and transact business for another 180 days.

However, atleast 50 per cent of the board needs to comprise independent directors. After Monday's resignations, the company still has two independent directors out of the five on the board. The company will have to fill up the vacancy positions within the next 180 days. Since the board originally had nine members, it could still function with a quorum of three directors under the rules.

This means that Ramalinga Raju will continue to manage the company in the forthcoming months despite a fall in the shareholding of the promoter family.

Some quick facts

• Satyam currently holding Rs5,361 crore as cash and cash equivalent in balance sheet
• Satyam lost 50 per cent in share value over December, gaining back some in the last couple of days.
• Satyam trading nearly 50 per cent discount of Infosys on one year forward multiple
• As of Sept 30, 2008 Satyam has networth of Rs8,368 crore
• The company's goodwill is valued at Rs.340 crore
• Satyam has around 50,000 employees