The company was planning to raise around $ 200 million from the overseas market. Till date, only Bangalore-based Infosys has raised funds from the American markets by listing its share on the Nasdaq.

``Satyan Computers in the past few weeks has been exploring the possibility of a foreign direct investment in line with its fund raising plans. It has met many international investors on this process, facilitated by Jardine Fleming. Satyam is now in the process of re-evaluating its future strategy and believes that this decision will not have any effect on its operational performance or its growth plans,'' the company said.

Satyam had completed the formalities for US listing of its fully owned subsidiary Satyam Infoway.Sterling Commerce of US had decided to pitch up 2.7 per cent stake in this company amounting to $ 5 million. As per the private placement plan, the proceeds were to go to retire debts of the company.

Satyam chairman Ramalinga Raju had said on that occasion that the move was to improve margins, provide resources to fund future growth and enable US dollar stock options to the company's overseas employees.

The retirement of the debt was to result in an interest saving amounting to over six per cent of its revenues, raising the net profit margin by around 26 per cent on an annualised basis. Sources say the funds may not have been so keen to pick up the shares at a higher rate. In fact, the shares were to known to have been preferred at a lower rate than the market price of Rs 1,756 per share.