Satyam plunges 73 pc to decade's low of Rs 48
IT major Satyam Computer fell to its lowest level in over a decade to Rs 48.90, nosediving as much as 73 per cent, following the resignation of company's Chairman B Ramalinga Raju.business Updated: Jan 07, 2009 15:24 IST
IT major Satyam Computer on Wednesday fell to its lowest level in over a decade to Rs 48.90, nosediving as much as 73 per cent, 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 per cent to a low of Rs 48.90, but was later trading at Rs 50, down 72.08 per cent in the afternoon trade on the BSE.
The scrip, which had opened at Rs 179.10, 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-dollar acquisition fiasco of firms promoted by his family, today 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 per cent 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 per cent at 9,922 points in the noon trade on the BSE.