The Hindu Business Line : Satyam stocks surge

MUMBAI: Satyam Computer Services on Monday surged nearly seven per cent on the bourses after the IT major said it will consider a possible corporate restructuring in its board meeting, now deferred to January 10.

In the morning trade, the scrip opened firm at Rs 135 and rallied further to touch the day's high of Rs 143.80, up 6.56 per cent from the previous close on the Bombay Stock Exchange.

At 11.55 am, the stock was quoted at Rs 136.20, up 0.40 per cent.

In a statement issued late on Saturday evening, the company had said the Board would also consider “measures to strengthen Satyam's governance structure including increasing the size and altering composition of the Board''.

Marketmen said the available cash in the balance sheet of the company is holding investors on to the scrip, hence there is some positive buying in the scrip.

“Market is expecting some positive trend in the scrip as vested buying is emerging. Investors are expecting some Private Equity infusion in the company or an aggressive buyback plan,'' Ashika Stock Brokers Research Head Paras Bothra said.

On the National Stock Exchange, the scrip touched a high of Rs 143.70 in the morning trade, up 5.93 per cent over previous close. Over 2.30 crore shares changed hands on the bourses. The IT major's share buyback proposal was an apparent attempt to molli fy investors left fuming after the abortive $1.6-billion bid to acquire Maytas Infrastructure and Maytas Property - both promoted by Satyam's chief Ramalinga Raju's sons.

The company had come under fire from shareholders and investors, mainly financial institutions, questioning the rationale behind the company's aborted move to acquire Maytas Infra and Maytas Properties. - PTI

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