Satyam plans bonus issue

While the company’s notice to the exchange mentioned no details about the ratio in which bonus would be issued, speculation on the ratio continued to be a prominent feature of the day. A section of the market believes that since the company is likely to reward the investors with a handsome dividend of over 35 per cent, the bonus would be in the ratio of 1:2 (one share for every two held). However on the contrary the bulls strongly believe that the company is in acomfortable position to reward the investors both with a liberal 1:1 bonus and a dividend.

The view was been based on the insight into the working of the company besides the export figures. According to market sources, while the major software vendors are concentrating on their fight against the Y2K bug, Satyam Computers seems to have gone a step forward to launch a unique product called Dr Millennium. Although the details of the product was not available, sources hinted that the finer design is targeted at providing value added Internet service to investors, especially the corporate sector.

Similarly, another rumour doing the rounds was of Satyam’s subsidiary to enter into a joint venture with KPMG the leading consultant. This joint venture, according to market sources, will enable Satyam to reap the benefits of the consultancy fees in the new set up.