MUMBAI, JULY 26: Software services firm Satyam Computer Services Ltd said on Monday it proposes to set in motion a two stage plan leading to an issue of American Depository Receipts (ADRs) abroad."The initial stage covers the proposal to raise funds through an equity placement, the proceeds of which will be primarily used to retire all debt," the firm said in a statement."Stage two will be the issue of ADRs to be listed in the US towards the beginning of the next financial year," it said. The statement said the retirement of existing debt will result in interest savings amounting to over six per cent of total revenues which would raise net profit margin to about 26 per cent on an annualised basis."The proposed equity capital raising exercise will make the company debt free, improve net profit margins, provide resources to fund its future growth plans and enable the offer of US dollar stock options to its overseas employees," the statement quoted chairman B Ramalinga Raju as saying.The statementdid not give details of the issue's size but said it hopes to complete the initial equity placement before the end of next month.Jardine Fleming India Securities Ltd has been engaged as financial advisor and placement agent for stage one.
