Satyam stocks surge 7% to Rs144 on BSE

Satyam stocks surge 7% to Rs144 on BSE
PTI
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First Published: Mon, Dec 29 2008. 12 37 PM IST
Updated: Mon, Dec 29 2008. 12 37 PM IST
Mumbai: Satyam Computer Services on Monday surged nearly 7% on the bourses after the IT major said it will consider a possible corporate restructuring in its board meeting, now deferred to 10 January.
In the morning trade, the scrip opened firm at Rs135 and rallied further to touch the day’s high of Rs143.80, up 6.56% from the previous close on the Bombay Stock Exchange (BSE).
In a statement issued late on Saturday evening, the company had said the Board would also consider “measures to strengthen Satyam’s governance structure including increasing the size and altering composition of the Board”.
Marketmen said the available cash in the balance sheet of the company is holding investors on to the scrip, hence there is some positive buying in the scrip.
“Market is expecting some positive trend in the scrip as vested buying is emerging. Investors are expecting some private equity infusion in the company or an aggressive buyback plan,” Ashika Stock Brokers Research Head Paras Bothra said.
On the National Stock Exchange, the scrip touched a high of Rs143.70 in the morning trade, up 5.93% over previous close. Over 2.30 crore shares changed hands on the bourses.
The IT major’s share buyback proposal was an apparent attempt to mollify investors left fuming after the abortive $1.6 billion bid to acquire Maytas Infrastructure and Maytas Property — both promoted by Satyam’s chief Ramalinga Raju’s sons.
The company had come under fire from shareholders and investors, mainly financial institutions, questioning the rationale behind the company’s aborted move to acquire Maytas Infra and Maytas Properties.
Even before it could douse the fire of Maytas fiasco, another controversy hit India’s fourth largest software firm with the World Bank imposing an eight-year ban on it for alleged inappropriate business practices.
“Investors are hoping for some dilution in the promoter stake. However, the long-term outlook of the scrip still remains volatile,” Bothra added.
The scrip was later trading at Rs135.50, up 0.41% on the BSE and up 4.13% at Rs141.25 on the NSE at 10:45 hrs.
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First Published: Mon, Dec 29 2008. 12 37 PM IST