Thursday, Dec 08, 2022

How Satyam got formed,got famous,got wild,and got caught

B Ramalinga Raju along with his brother B. Rama Raju and brother-in-law DVS Raju founds Satyam with 20 employees

1987 B Ramalinga Raju along with his brother B. Rama Raju and brother-in-law DVS Raju founds Satyam with 20 employees

1991 Satyam goes public. IPO oversubscribed by 17 times. First offshore contract from US tractor maker John Deere & Co is won

1993 Awarded ISO 9001 Certification,Satyam Technology Center (STC) inaugurated,Joint venture with GE announced

1999 Satyam Infoway (Sify) becomes the first Indian Internet company listed on NASDAQ,Satyam now has a presence in 30 countries

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2000 Satyam now has 10,000 employees. World Economic Forum identifies Satyam as one of the “100 leading pioneering technology companies”

2000 Satyam receives National HRD Award from Indian government,Dataquest names Ramalinga Raju “IT Man of the Year”

2001 Satyam is listed in New York. Becomes the first IT Company in the World Certified under ISO9001:2000 by BVQI. Wins the Golden Peacock for Excellence in Corporate Governance again.


2003 “Gartner confers the Best Risk Management and Solution Delivery award on Satyam. Ranked Among Top 10 Best Employers (CNBC-Hewitt Best Employers Survey) and Ranked Among Top 10 Best Companies to Work for in India (Business Today -Mercer-TNS Survey )

2003 Satyam starts providing IT services to the World Bank

2004 Ranked Among India’s Top 10 Best Employers (CNBC-Hewitt Best Employers Survey)

2005 Ranked among Top 13 Best-Managed Companies in India (Business Today and AT Kearney),Forbes Top Asian Companies under US$1 billion


2005 Winner,Corporate Citizen I award for Corporate Social Responsibility (Business World ,FICCI,and SEDF)

2005 Largest global development center outside India (in Melbourne) begins operation,Citisoft and Knowledge Dynamics acquired

2006 Awarded the TDWD Best Practices Award,Third-Best Company to Work for in India (BT-Mercer-TNS),RASBIC Award for most innovative recruitment practices,

2006 Revenue exceeds US$1 billion,Sets up the first “Global Innovation Hub” in Singapore,Sets up operations in Guangzhou,China

2007 Raju wins the Ernst & Young Entrepreneur of the Year Award


2007 Satyam wins Partner Innovation Award for Anti-Money Laundering (AML) solution,Frost and Sullivan awards it the Competitive Strategy Leadership Award for Offshore Testing Market

2007 Satyam wins both the Asian MAKE (Most Admired Knowledge Enterprise) Award and the Indian MAKE Award and the BML Munjal Award for Excellence in Learning and Development


2007 First Asian company to rank in Training Magazine’s Top 125 companies for learning,Second-Best Employer in India (Hewitt India),The only IT Services company from India in the list of the TOP 20 Best Employers in Asia (Hewitt Asia)

2007 An internal World Bank investigation found that former VP Mohamed Muhsin had secured contracts and purchase orders worth $100 million for Satyam in return for company stock options (ADRs) at preferential prices. Muhsin was banned permanently from the bank.

2008 Revenue crosses $ 2-billion mark


2008 Secondary listing on Euronext Amsterdam launched under NYSE Euronext’s new “fast path” process for cross listings in New York and Europe.

2008 World Council for Corporate Governance (WCFCG) awards Satyam the Golden Peacock Global Award for Excellence in Corporate Governance,Best IR Website in the Asia Pacific & Africa region for providing complete,accurate and timely investor relations information (MZ Consult),UK Trade & Investment India (UKTI) Business Award for corporate social responsibility

Mar-08 Satyam reports a 46.3% rise in revenue to $2.1 billion under the US accounting standards,while net income rises 39.7% to $417 million.

Sep-08 Satyam has 52,856 employees,a presence in 65 countries partnering with 690 global customers including 185 Fortune 500 companies

16-Dec-08 Satyam announces plan to buy Maytas Infrastructure and Maytas Properties,two building firms part-owned by the outsourcer’s founders for $1.6 billion to alledgedly “de-risk” Satyam’s core business in IT services. 12 hour later the deal is killed. The company’s share price plunges 55% in hectic US trading.

17-Dec-08 Ramalinga Raju says the about-turn reflected negative investor reaction. Satyam shares fall by a third on concerns about corporate governance.

18-Dec-08 Satyam board says will meet on Dec. 29 to consider a share buyback in a bid to restore confidence.

23-Dec-08 Barred from business with the World Bank for eight years for providing Bank staff with “improper benefits”. Shares fall another 14% to their lowest in more than 4-½ years.

24-Dec-08 Satyam shares rally amid market talk the outsourcer may have become an attractive takeover prospect given the steep share price fall.

25-Dec-08 Satyam says it asked the World Bank to withdraw “inappropriate” statements.

26-Dec-08 Mangalam Srinivasan,an independent director,resigns.

28-Dec-08 Board meeting deferred until January 10 to give company time to consider options to shore up investor confidence.

29-Dec-08 Three more directors quit,but Satyam shares rise on hopes for moves to improve shareholder value and corporate governance.

30-Dec-08 Shares extend gains on talk of private equity interest and a management change. One of Satyam’s largest investors says it could sell its stake.

02-Jan-09 Raju’s stake falls by a third to 5.13%. Analysts say this means the company is a more attractive bid target.

05-Jan-09 Company shares tumble 9 percent on concern that corporate governance issues could hit new business.

06-Jan-09 Shares rise more than 7 percent on a newspaper report Satyam had been approached by smaller rivals Tech Mahindra for an all-share merger

Before noon 07-Jan-09 Raju admits to fraud,resigns as Chairman. Managing Director B Rama Raju also resigns. Company shares fall by 54 per cent at Rs 83. Tech Mahindra says it no longer wants Satyam under these circumtances DSP Merrill Lynch terminates its engagement with Satyam

Afternoon 07-Jan-09 Satyam shares nosedived nearly 70 per cent to an all-time low of Rs 58 Satyam case referred to Serious Fraud Investigation Office of Corporate Affairs Ministry; brokerage firm Credit Suisse suspends coverage of India’s Satyam

Compiled by Gayatri Verma

First published on: 08-01-2009 at 03:01:43 am
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