Satyam nosedives in early trade, tanks 33 pc | business | Hindustan Times
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Satyam nosedives in early trade, tanks 33 pc

business Updated: Dec 17, 2008 11:20 IST

Satyam Computer on Wednesday tanked as much as 33 per cent and witnessed its 52 week low level on bourses in early morning trade amid the company calling off its USD 1.6 billion deal to acquire two infrastructure businesses promoted by the IT major Chief Ramalinga Raju's son.

Satyam on Wednesday opened at Rs 200, a fall of nearly 12 per cent in the early trade on the Bombay Stock Exchange. The scrip lost further ground and tanked as much as 30.75 per cent to touch an intra day low of Rs 156.85.

Similar trend was witnessed on the National Stock Exchange where the scrip opened on a weak note at Rs 214.90, then dipped further to witness an intra day low of Rs 151, a fall of 33.35 per cent from its previous closing price.

"By announcing such a deal, which was wiping off the entire cash in the balance sheet, the management has given a bad impression," Ashika Stock Brokers Research Head Paras Bothra said.

The fall in the share price today is more of a sentimental impact and the announced deal would have a lasting impression on the institutional investors, who would continue their sell off in the short term, Bothra added.

Announcing the decision to call off the proposed acquisition of Maytas Properties and Maytas Infrastructure "in the light of the setback received from the investors community", Raju said, "We have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition.

"However, in deference to the views expressed by many investors, we have decided to call off these acquisitions."

At 10:39 am the scrip was trading at Rs 168.75, down 25.50 per cent on BSE and at the NSE the stock was quoted at Rs 168.85, down 25.47 per cent.