Mumbai: Satyam Computer Services on Wednesday plunged over 18% on the bourses after the World Bank declared the domestic IT major as “ineligible” for eight years to receive direct contracts.

It opened at Rs130, and plunged further to its 52-week low of Rs114.65, down 18.34% on the Bombay Stock Exchange (BSE).

In a statement issued on Tuesday, World Bank said: “Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charges for its sub- contractors.”

On the National Stock Exchange, the scrip nosedived 18.59% to its 52-week-low level of Rs114.55. Over 3.70 crore shares changed hands on the two bourses.

World Bank’s decision was effective from September this year and earlier Satyam was temporarily suspended in February. It declared Satyam ineligible to receive direct contracts under its corporate procurement programme.

The statement also noted that there is no evidence that the Indian company was involved in malicious attacks on the bank’s information systems.

The development comes at a time when the company is facing massive hammering in its share price over its abortive US $1.6 billion acquisition deal for two infrastructure firms - Maytas Infra and Maytas Properties.

The market regulator Securities and Exchange Board of India and the government had said that they would look into the matter.

Satyam was later quoting at Rs120.35, down 14.28% on the BSE and down 14.46% at Rs120.35 on the NSE at 10:41am.