Mumbai: IT major Satyam Computer on Wednesday fell to its lowest level in over a decade to Rs48.90, nosediving as much as 73%, 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% to a low of Rs48.90, but was later trading at Rs50, down 72.08% in the afternoon trade on the BSE.
The scrip, which had opened at Rs179.10, 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 acquisition fiasco of firms promoted by his family, on 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% 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% at 9,922 points in the noon trade on the BSE.