Having won the auction, Pune-based Tech Mahindra will buy 31% in Stayam at 58 rupees per share, valuing the stake at around $351 million. The buyer is then required to make a mandatory cash tender offer to buy another 20% from investors at the same price.

The deal comes three months after Satyam's founder and chairman B Ramalinga Raju resigned after admitting the company's profits have been falsely inflated for several years, leading to a $1 billion hole in the balance sheet.

The Indian government sacked the company's board and put in place a new one while it looked for a buyer.

Tech Mahindra beat engineering firm Larsen & Toubro and private equity outfit WL Ross & Co in the auction. BT, which holds a 31% stake in the company, has backed the deal.

The acquisition will boost Tech Mahindra's workforce by around 48,000 to nearly 75,000, as it looks to compete with India's biggest IT outsourcing companies Infosys, Tata Consultancy Services and Wipro.

It also gains some blue chip clients, including Citi, although Satyam has reportedly lost dozens of customers in the wake of the scandal.

Commenting on the win, Vineet Nayyar, vice chairman and CEO of Tech Mahindra, says "we will work with Satyam's customers, business partners, employees and other stakeholders to restore confidence in the company and to create a platform for future growth".

The bid is subject to approval from the Company Law Board.

Goldman Sachs and Avendus Capital advised Satyam on the deal. Tech Mahindra was advised by Kotak Investment Banking and UBS.