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Satyam investors lose over 13,000 cr in a month
January 09, 2009 19:03 IST
Last Updated: January 09, 2009 19:17 IST
Investors have lost a whopping Rs 13,600 crore ($2.82 billion) in Satyam [Get Quote] shares in less than a month, since the skeletons started tumbling out of the company's cupboards.
The market capitalisation of Satyam fell to Rs 1,607.04 crore (Rs 16.07 billion) on Friday from Rs 15,262 crore (Rs 152.62 billion) at the end of trade on December 16, 2008, the day when Satyam announced an $1.6 billion acquisition deal of two firms promoted by the kin of IT firm's former chairman Ramalinga Raju. However, the company aborted the deal hours later after the investors dissent.
The meltdown in the scrip wiped off as much as Rs 13,655 crore (Rs 136.55 billion) in just 19 trading sessions.
The share price of Satyam plunged to Rs 23 on Friday from over Rs 200 levels on December 16, when the fiasco began.
The major erosion in the market cap was suffered in the past two trading sessions which wiped off Rs 10,460 crore (Rs 104.6 billion) with the scrip plunging as much as 86 per cent since January 7.
Analysts believe the scrip is likely to stagnate at Rs 20 levels even as the Satyam counter was among the most traded on the bourses.
"The scrip is stagnating at Rs 20 levels. But we cannot fix the valuation of the company based on the current price movement. The scrip is more of news report driven and struggling to find some ground," SMC global vice president Rajesh Jain said.
Interestingly, Satyam shares had gained a combined 23 per cent in six consecutive trading sessions between December 26 and January 1, amid reports that the firm was ripe takeover target for rival IT firms and private equity investors.
The stock had also gained after the company announced that the board would consider a buyback of shares in its meeting scheduled for December 29.
However, the company had postponed the board meeting to January 10.
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