Mumbai: Software services firm Satyam Computer on Friday surged as much as 6%in morning trade on the Bombay Stock Exchange index after the company asked the World Bank to apologise and withdraw its statement regarding the eight-year ban on the IT major for its “improper business practices”.
The country’s fourth largest IT services company is likely to take legal action against the World Bank in the face of the lender’s refusal to withdraw its statement that made public the decision to ban Satyam Computer for eight years from doing business with it.
The stocks of the company opened on a firm note on the BSE at Rs135, then rallied ahead to touch an intra-day high of Rs143.55, up 6.37% from its previous closing price.
Satyam, which has courted controversy for its decision to buy Maytas Properties and Maytas Infra and then giving up the idea, said the World Bank’s statement on 23 December had caused it enough “harm”, and sought an apology for it.
The World Bank had said “Satyam was declared ineligible for contracts for providing improper benefits to the Bank staff and for failing to maintain documentation to support fees charges for its sub-contractors.”
Similar movement was witnessed on the National Stock Exchange, where the company opened at Rs135.50, touched an intra-day high of Rs143.20, up 6.34% from its last close.
On the volume front, good movement was witnessed as over 8.57 lakh shares exchanged hands on the BSE and nearly 27.14 lakh shares have traded on the NSE.
However, the India spokesperson of the World Bank, Sudip Mozumder, has said that “the Bank stands by its statement issued on its Indian website on 23 December”.