BUSINESS

Satyam's fall: From Rs 542 per share to Rs 58

Source:PTI
April 13, 2009 18:56 IST
Once quoted at a price of Rs 542 per share, Satyam Computer on Monday went under the hammer for Rs 58 a share, about one-tenth of the level the IT company enjoyed about a year-ago, when no one had any inkling about the scam being perpetuated there.

Tech Mahindra, which emerged as a winner in the race to acquire fraud-hit Satyam Computer, has bid the highest price of Rs 58 per share and would have to shell out an aggregate of about Rs 2,889 crore (rs 28.89 billion) for 51 per cent stake in the company.

Based on the bid price, market capitalisation of the expanded equity base of Satyam would be around Rs 5,600 crore (Rs 56 billion).

Months before the scam at Satyam had come to light with confessions of its founder and former chairman B Ramalinga Raju, the Satyam scrip had hit a 52-week high of Rs 542 in May last year. The IT firm's market capitalisation had been over Rs 36,600 crore (Rs 366 billion) at that time.

After the confession, the scrip had plunged to a low of Rs 6.30 on the National Stock Exchange on January 9.

The market valuation of the firm had fallen to a low of just Rs 404.33 crore (Rs 4.04 billion) based on the Rs 6.30 share price.

Besides, the current valuation of Satyam at the sale price of around Rs 5,600 crore (Rs 56 billion) is just about one-sixth of its last year's market capitalisation.

Source: PTI
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