Satyam Stock Prices | Satyam Shares | Satyam Latest News and Crisis | Chairman B Ramalinga Raju and Managing Director B Rama Raju Resigns

IT major Satyam Computer on Wednesday nosedived nearly 70 percent to an all-time low of Rs 58, following the resignation of the company's Chairman B Ramalinga Raju and Managing Director B Rama Raju.

Shares of Satyam plunged as much as 67.71 percent to a low of Rs 58, but was later trading at Rs 73.50, down 58.96 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.

Raju had been under attack over the 1.6-billion-dollar acquisition fiasco of firms promoted by his family.

The counter saw frantic selling after the announcement and nearly 13 crore shares had changed hands on both the bourses within an hour.

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.

The resignations, ahead of the January-10 board meeting, has pushed the company into crisis and paved the way for immediate restructuring of the board and the management.

On the National Stock Exchange, the scrip plunged 55.63 per cent to an all time low of Rs 79.40. It was later trading at Rs 80, down 55.29 per cent in the afternoon trade.

In a regulatory filing, the company said Raju would continue to be the chairman till the board is expanded...via

Shrugging off early gains, the Bombay Stock Exchange benchmark Sensex on Wednesday tumbled over 750 points points at noon to dip below the psychological 10,000-points level, on heavy selling by funds after reports of Satyam Computer Services chairman resigning.

At 1405 hrs, the Sensex, which opened higher by 133.79 points, fell back to record a heavy loss of 709.94 points at 9,625.99 as the index-linked Satyam Computer plunged by Rs over 70 percent, to Rs 83.60.

Selling pressure sparked after reports that Satyam Computer Services Chairman Ramalinga Raju tendered his resignation, ahead of the crucial January-10 board meeting.

With the mounting selling pressure, the wide-base National Stock Exchange's index Nifty dropped by 124.70 points at 2,988.10 at the same time.

STOCK PRICES OF SATYAM ON MONEYCONTROL.COM



Infosys Shares and Planning as a Reaction to Satyam Crisis

Commenting on resignation of Satyam Chairman, Ramalinga Raju, Mohandas Pai, Head-HR Administration, Infosys, said, he had never imagined something of this proportion would happen “It is a bad day for corporate India and IT industry. He feels that the auditing process should get more rigorous and that all companies should make sure that bank balance confirmation goes directly to auditors.

Pai feels outsourcing clients will take a more cautious approach now and people having large exposure to outsourcing will consolidate and work to minimise the risk, he added.

“Investors will be very worried and this is critical time for company and thus management has to be changed for company to protect careers of their employees',.” Pai said. Clients will ask for more information; as Satyam fraud is an aberration with deliberate malicious intent. As far as the FII flows are concerned, there will be an impact, but it will be more selective.

According to Pai, independent directors not knowing about the fraud is quite credible as they know the criminal liabilities could come to them.

He feels it is good to have regulator and the government set up its team to investigate – come out with a set of things to be done and the auditing process should get more rigorous...more