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Satyam shares topple on bourses; drop to Rs 20 level
January 09, 2009 11:19 IST
Last Updated: January 09, 2009 18:01 IST
Satyam [Get Quote] shares on Friday received a severe lashing on the bourses with its shares plunging as much as 84 per cent to just Rs 6.30, but later recovered some of the losses to settle around Rs 20 level.
The scrip ended the trade at Rs 23.75, down 40.99 per cent over previous closing on the National Stock Exchange. During the day the scrip had plunged to its near-face value level of Rs 6.30, down 84.34 per cent on the bourse. The scrip carries the face value of Rs 2.
Marketmen said that the small recovery in the scrip from the day's low does not indicate any positive sign for investors as the company's fundamentals are totally shaken.
"The volumes might be good, but there is not much to read into the scrip. The fact remains that the fundamental of the company is no where," Arun Kejriwal of Kejriwal Research and Investment Services said.
On the Bombay Stock Exchange, Satyam settled with a drop of 40.30 per cent at Rs 23.85. During the day, the scrip had nosedived to a low of Rs 11.50, down 71.21 per cent over previous close on the bourse.
Since January 7, when Satyam founder Ramalinga Raju resigned from the board disclosing accounting frauds in the company, the scrip has lost a hefty 87 per cent.
"The scrip is stagnating at Rs 20 level. 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.
Crisis-ridden Satyam on Thursday started an exercise to keep afloat by according top priority to arranging funds and paying staff salaries, as the government and regulator SEBI started their probe.
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