ID :
39462
Thu, 01/08/2009 - 05:16
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http://m.oananews.org//node/39462
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Satyam plunges 73 pc to decade`s low of Rs 48
Mumbai, Jan 7 (PTI) India's IT major Satyam Computer
Wednesday fell to its lowest level in over a decade to Rs
48.90, nosediving as much as 73 percent, following the
resignation of company's Chairman B Ramalinga Raju and
revelation of malpractices in the firm's accounting methods.
Shares of Satyam plunged as much as 72.70 percent to a
low of Rs 48.90, but was later trading at Rs 50, down 72.08
percent in the afternoon trade on the BSE.
The scrip, which had opened at Rs 179.10, plunged within
minutes of Satyam Chairman and Managing Director tendering
their resignation.
Analysts believe investor confidence has shattered
completely as the company was operating its business based on
entirely false balance sheet.
"The Satyam case is entirely disastrous and the investors
have been completely misguided and misled. People will not
think more in the company as some more frauds may be revealed
in the near future," Ashika Stock Brokers' Research head Paras
Bothra said.
Ramalinga Raju, who had been under attack over the
1.6-billion-dollar acquisition fiasco of firms promoted by his
family, Wednesday resigned as Satyam Chairman after admitting
to major financial wrong doings and saying his last-ditch
efforts, to fill the "fictitious assets with real ones"
through Maytas acquisition, failed.
The counter saw frantic selling on the bourses after the
news broke out, and nearly 27 crore shares had changed hands
on both the bourses till the afternoon trade.
Satyam stock holds a 1.56 percent weight in the 30-share
bluechip index Sensex. Following the same, the benchmark index
also plunged over 400 points and was trading down nearly 4
percent at 9,922 points in the noon trade on the BSE.
The scrip has revisited the Rs 49 levels after a gap of
nearly 12 years, as in March, 1997 the stock had been around
Rs 49.75.
The resignations, ahead of the January-10 board meeting,
has pushed the company into crisis and paved way for
immediate restructuring of the board and the management.
On the National Stock Exchange, the scrip plunged 72.59
percent to an intra-day low of Rs 49.05. It was later quoted
at Rs 50.80, down 71.61 percent in the afternoon trade.
Satyam's American Depository Receipts, listed on the New
York Stock Exchange, had closed up four percent at 9.35 dollar
Tuesday, and are expected to witness a sharp plunge when the
American markets open.
"The ADRs are likely to cues from the domestic market and
may plunge as much as 80 percent, as the investors know that
the company's fundamental have been completely shaken and
their confidence has been totally shattered," Arun Kejriwal
director of Kejriwal Research and Investment Services said.
PTI
Wednesday fell to its lowest level in over a decade to Rs
48.90, nosediving as much as 73 percent, following the
resignation of company's Chairman B Ramalinga Raju and
revelation of malpractices in the firm's accounting methods.
Shares of Satyam plunged as much as 72.70 percent to a
low of Rs 48.90, but was later trading at Rs 50, down 72.08
percent in the afternoon trade on the BSE.
The scrip, which had opened at Rs 179.10, plunged within
minutes of Satyam Chairman and Managing Director tendering
their resignation.
Analysts believe investor confidence has shattered
completely as the company was operating its business based on
entirely false balance sheet.
"The Satyam case is entirely disastrous and the investors
have been completely misguided and misled. People will not
think more in the company as some more frauds may be revealed
in the near future," Ashika Stock Brokers' Research head Paras
Bothra said.
Ramalinga Raju, who had been under attack over the
1.6-billion-dollar acquisition fiasco of firms promoted by his
family, Wednesday resigned as Satyam Chairman after admitting
to major financial wrong doings and saying his last-ditch
efforts, to fill the "fictitious assets with real ones"
through Maytas acquisition, failed.
The counter saw frantic selling on the bourses after the
news broke out, and nearly 27 crore shares had changed hands
on both the bourses till the afternoon trade.
Satyam stock holds a 1.56 percent weight in the 30-share
bluechip index Sensex. Following the same, the benchmark index
also plunged over 400 points and was trading down nearly 4
percent at 9,922 points in the noon trade on the BSE.
The scrip has revisited the Rs 49 levels after a gap of
nearly 12 years, as in March, 1997 the stock had been around
Rs 49.75.
The resignations, ahead of the January-10 board meeting,
has pushed the company into crisis and paved way for
immediate restructuring of the board and the management.
On the National Stock Exchange, the scrip plunged 72.59
percent to an intra-day low of Rs 49.05. It was later quoted
at Rs 50.80, down 71.61 percent in the afternoon trade.
Satyam's American Depository Receipts, listed on the New
York Stock Exchange, had closed up four percent at 9.35 dollar
Tuesday, and are expected to witness a sharp plunge when the
American markets open.
"The ADRs are likely to cues from the domestic market and
may plunge as much as 80 percent, as the investors know that
the company's fundamental have been completely shaken and
their confidence has been totally shattered," Arun Kejriwal
director of Kejriwal Research and Investment Services said.
PTI
