Business Daily from THE HINDU group of publications
Thursday, Jan 08, 2009
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Business Daily from THE HINDU group of publications Thursday, Jan 08, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Our Bureau Mumbai, Jan. 7 The timing of Mr Ramalinga Raju’s confessional statement admitting to a Rs 7,000-crore fraud in his company has raised several eyebrows among the investor community. Mr Raju’s statement comes just a day after the announcement that IL&FS Trust Company had sold Satyam shares pledged with it, amounting to 3.64 per cent stake in the company, over the last fortnight. IL&FS sold the shares, acting as a trustee for debenture holders and lenders DSP Merrill Lynch, DSP Blackrock, Deutsche Bank and IL&FS Financial Services. “One cannot rule out the possibility that these companies were in the know of the developments. Or it could be a coincidence that they pulled out of Satyam just a day before the Chairman’s announcement,” said the head of institutional business at a brokerage house. On Tuesday, the stock had risen 7 per cent on rumours that Satyam might be merged with another software firm. Even until 11 a.m. on Wednesday, it was moving up, having gained five per cent from its previous close until the time of the Chairman’s disclosure. No sooner than the announcement was made, the stock started slipping and fell 80 per cent to its all-time low of Rs 30.70 on the BSE. The stock closed at Rs 39.95, down by 77.69 per cent from Tuesday’s close. During the day, 47.3 crore shares exchanged hands on the NSE and BSE. Meanwhile, Maytas Infra, another company owned by the Satyam promoters, slid 4.99 per cent and hit the lower circuit at Rs.159.05, where it remained locked until close of trade. “We believe that this development is going to have a major impact on Satyam’s business with its clients. In our opinion, in the short-term, we will see lot of Satyam’s clients migrating to competitors like Infosys, TCS and Wipro. Also, this development would make Satyam unattractive for any competitor or a PE player thinking of buying a stake in the company,” said Religare Hichens Harrison. Swiss Finance Corporation and Aberdeen Asset Managers on Wednesday sold their stake in Satyam, according to the bulk deal reports on the BSE. The latter sold 77.8 lakh shares and the former sold 140 lakh shares. Retail investors bought a significant lot of shares in Satyam, said brokers. “One of my clients, who is a qualified chartered and cost accountant, bought a huge amount of shares today,” said a sub-broker. A BSE spokesperson said: “In light of today’s developments at Satyam, BSE will take stock of the situation and take an appropriate view.” A media spokesperson with NYSE Euronext said that trading has been suspended in New York and in Amsterdam. IL&FS Trust sells 44.1 lakh Satyam shares More Stories on : Stocks | Financial Institutions | Software | Satyam Computer Services Ltd
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