Satyam back in top 100 m-cap club; grows 13-times since nadir
Scam-hit Satyam Computer has entered again the elite club of the top 100 companies in terms of market valuation — a status it had lost after being hit by the country's biggest corporate fraud.business Updated: Jun 14, 2009 11:11 IST
Scam-hit Satyam Computer has entered again the elite club of the top 100 companies in terms of market valuation — a status it had lost after being hit by the country's biggest corporate fraud.
Following a sharp rally seen in its share price last week on the back of disclosure about its profits, Satyam's market capitalisation has grown to about Rs 7,800 crore, placing it among the 100 most-valued firms in the country.
The company had moved out of this league soon after the disclosure about the fraud on January 7 -- the day when its founder and then Chairman B Ramalinga Raju admitted to multi-year financial fraud at the company.
Two days later on January 9 — when the company's share price and market valuation hit their all-time lows at Rs 6.30 a share and about Rs 600 crore, respectively — Satyam did not figure even among the 300 most-valued firms.
In contrast, Satyam was placed as the country's 34th most-valued firm with a market capitalisation of over Rs 15,000 crore on December 16 — just before Raju unsuccessfully tried to acquire two firms promoted by his family in his bid to conceal the financial fraud at the company.
While it is still to recover about half of its lost value due to the scam, the shares have grown back to Rs 80-level --representing a 13-times surged from its low.