Satyam surges 67 pc in early trade on BSE
Shares of Satyam Computer Services jumped as much as 67 per cent in early trade on the bourses following the appointment of a three-member board by the government to restore investors' confidence in the software services firm.business Updated: Jan 12, 2009 11:10 IST
Shares of Satyam Computer Services on Monday jumped as much as 67 per cent in early trade on the bourses following the appointment of a three-member board by the government to restore investors' confidence in the software services firm.
Satyam Computer on Monday opened on a bullish mode after being battered in the previous few trading sessions and witnessed an intra-day high of Rs 40, a surge of 67.71 per cent on the Bombay Stock Exchange.
Marketmen said the government's decision to reconstitute Satyam Board and appointment of HDFC Chairman Deepak Parekh, former Nasscom President Kiran Karnik and former Sebi member C Achutan to the Board would restore confidence of investors and would salvage the troubled company.
Similar movement was witnessed on the National Stock Exchange as well where the scrip of the company opened at Rs 28.50, a jump of 20 per cent over its previous close. The scrip then rallied further and touched an intra-day high of Rs 39.90, up 68 per cent from its last close on the NSE. Meanwhile, Satyam in a statement on Sunday had said that "this is a vital stabilising development for Satyam, and it marks the beginning of a new chapter in the company's history".
On the volume front, as many as 1.09 crore shares exchanged hands on the BSE while nearly 2.61 shares got traded on the NSE.
According to Satyam, the reconstitution of the board will "ensure the company's continued operations, help maintain customer confidence and associate morale, and restore investor trust."