Decks have been cleared for the sale of Satyam Computer Services. The Company Law Board (CLB) on Thursday gave it permission to conduct a public auction for inducting strategic investors and to raise its equity base.

Last week, the Securities and Exchange Board of India (Sebi) had amended the takeover norms for distressed companies to enable firms like Satyam to induct strategic partners. Now it is for the company?s board to begin the bidding process and set the open offer price.

After hearing a Satyam petition on Wednesday, CLB ordered that it could conduct a transparent auction process for roping in a strategic investor. It also permitted the board to raise the company?s authorised equity share capital, currently at Rs 160 crore, comprising 80 crore equity shares of Rs 2 each, to Rs 280 crore comprising 140-crore equity shares of Rs 2 each.

To expedite the sale process, Satyam had sought CLB?s permission for an open auction to find an investor and get the funds needed to ensure its uninterrupted operations. The company also warned that many of its key clients and staff have threatened to quit due to the firm?s financial troubles and, therefore, it urgently needed fresh capital.

So far engineering firm L&T, which has picked up a 12% stake in the company, the B K Modi group?s Spice Corp, the Hindujas and Essar group?s BPO firm Aegis have evinced interest in buying Satyam in whole or in parts.

Meanwhile, Satyam on Thursday also announced a slew of cost-cutting measures, including relocating onsite support staff, to tide over the financial crisis in the company. In an address to employees, the company?s CEO, AS Murty, said, ?The global economic condition and outlook remain dismal, even as we begin our own financial recovery. This means our challenges are extraordinary, and meeting them will require extraordinary efforts. To do this, we must control costs and conserve cash.?

As a policy, the pre-sales, solution architect, delivery and operational support personnel will be located in the low-cost countries, Murty said. ?All units have to sharply reduce (by more than 60%) non-billable domestic and international travel.? Business class travel has been totally suspended.

The company has also put a freeze on internal expenses. ?All capital expenditure, unless required to meet customer deliveries, is being suspended until further notice. This includes renewal of laptops and office renovation.? These measures are necessitated not just because of our financial situation, but are relevant given the larger economic slowdown,? he said.

Satyam has also suspended external training and advertising & marketing expenses. ?We will maximise the use of internal training facilities and instructors,? Murty said, adding, ?the company will also terminate the lease of several rented premises to provide a sizeable saving.?

Hotel stays have been suspended for all associates in cities where Satyam has guest houses. ?As much as possible, overnight stays to be based on absolute need. When guest houses are not available, hotel stay within eligible limits will be permitted. Requests for deviations from these limits are being completely discouraged,? Murty added.