If diversifying into infrastructure and real estate was indeed the objective, Satyam Computers promoter B Ramalinga Raju needn’t have taken a corporate governance headache. For $1.6 billion (Rs 7,800 crore) it was willing to pay for Maytas Infra and Maytas Properties — companies owned by his family —Raju could have got some of the best real estate and construction companies in India.
Add Rs 400 crore and Satyam could have bought the top five listed construction and real estate companies in Andhra Pradesh — Lanco Infratech, IVRCL Infrastructure, Nagarjuna Construction, BGR Energy and IVR Prime Urban Developers.
All these are profitable companies that have big orders lying in their kitty, apart from quality land banks.
But Rs 7,800 crore can go a longer way. Barring DLF and Jaiprakash Associates, Satyam can buy any listed real estate company. In fact, this money could help Satyam buy Unitech, Omaxe and Purvankara, as all three have a combined market value of less than Rs 7,800 crore.
Unitech, that now commands a market capitalisation of Rs 5,665 crore, which is 6.7 per cent of its January 10, 2008 value of Rs 84,017 crore.
For the sake of further diversification, Satyam’s Rs 7,800 crore can buy 29 listed real estate and construction companies that are valued between Rs 50 crore and Rs 1,000 crore.