Mumbai: Shares in Satyam Computer Services rose as much as 5.8% on Tuesday, helped by a newspaper report that private equity players were eyeing a stake in India’s fourth-largest software exporter.
The embattled company, which is also listed in New York has seen its shares tumble since a botched attempt two weeks ago to buy two firms in which Satyam management held stakes and after news it had been barred from doing business with the World Bank.
The Economic Times newspaper reported on Tuesday some institutional investors in the company had approached IT firms and private equity players for a stake sale. It cited market participants as its sources.
Company officials could not immediately be reached for a comment.
“Satyam is a good bet for short-term trade with reports PE players are looking at a stake in the company,” said Amitabh Chakraborty, president of equities at Religare Securities.
At 10:55am, Satyam was trading 3.4% higher at Rs153.35, having touched Rs156.90.
The main stock index was 0.2% up at 9,556.57 points.
Other market players said the share had been lifted by speculation of a change in management.
“There has been buying on some ray of hope of a management change, but I maintain a negative view, as the main issues have not changed,” Jigar Shah, senior vice president, Kim Eng Securities, said.
Four independent directors have resigned from Satyam’s board in the past week and the company has said it will hold a board meeting on 10 January to consider options to improve shareholder value and corporate governance.