Meanwhile, the BSE Sensex was up 133.41 points, or 0.78%, to 17,303.32.
On BSE, 51.57 lakh shares were traded in the counter as against an average daily volume of 81.54 lakh shares in the past one quarter.
The stock hit a high of Rs 100 and a low of Rs 92.25 so far during the day. The stock had hit a 52-week high of Rs 238.70 on 11 December 2008 and a 52-week low of Rs 11.50 on 9 January 2009.
The stock had underperformed the market over the past one month till 2 December 2009, falling 10.71% as compared to the Sensex’s 8.01% rise. It outperformed the market in past one quarter, sliding 24.43% as against 11.01% increase in the Sensex.
The mid-cap software outsourcer has an equity capital of Rs 235.15 crore. Face value per share is Rs 2.
Mahindra Satyam’s president, global operations, Atul Kunwar was quoted by the media as saying last month that customer attrition has stopped and the firm is not resorting to price cuts to bag new deals. The company has added about 36 clients since July and currently has about 420 customers. It has renewed over 50 deals in the last three months.
Mr Kunwar said the company is working on reviving contracts with customers who left in the wake of the scandal, and is in talks with the World Bank to lift an eight-year ban imposed last December. The company, which is looking at expanding its board with independent directors, is not seeing any payment delays, he said.
The stock had slumped 10.92% to Rs 90.55 on 25 November 2009, after the Central Bureau of Investigation (CBI) found evidence of an additional Rs 4739 crore corporate fraud in the company, perpetrated by its founder R Ramalinga Raju and his associates.
Raju confessed in January 2009 of overstating the software outsourcer’s accounts by Rs 7136 crore. Tech Mahindra, a part of the Mahindra and Mahindra group, has since gained a controlling stake in Satyam following an auction conducted in April 2009.
The new evidence from the Central Bureau of Investigation (CBI) takes the overall extent of the Satyam fraud to Rs 11875 crore.
The agency also estimates the overall fraud suffered by investors in the company to be at least Rs 14000 crore during the period of the fraud.
CBI deputy inspector general V V Laxmi Narayana, was quoted by the media as saying that the new charges related to Rs 1931 crore which Raju and other key accused in the case had obtained by pledging their shares at an inflated value; Rs 1,220 crore of loans raised by forging board resolutions; and Rs 748 crore gained by off-loading stocks in the market, again at higher values.
The accused had also drawn Rs 230 crore in dividends on inflated profits; inflated revenue to the tune of Rs 430 crore by generating fake invoices and customers; and falsified the accounts to the tune of Rs 180 crore while acquiring Nipuna Services, a business process outsourcing firm, Mr Narayana added.
The CBI which had filed its first charge sheet on 7 April 2009, also filed on Tuesday, 24 November 2009, a supplementary charge sheet against 10 people accused in the case, a list that now includes V S Prabhakar Gupta, previously internal audit head at the software firm.
Gupta was arrested on 21 November and remanded to judicial custody. He was accused of willful suppression of auditing irregularities and for his role in the conspiracy.
Last December, Raju had proposed acquiring Maytas Infra and Maytas Properties, both run by his son, but gave up the idea after investors protested. The collapse of this deal set off a train of events that resulted in his confession in January.
Mahindra Satyam posted a profit of Rs 4 crore on revenue of Rs 681 crore in January 2009 and net profit of Rs 52 crore on revenues of Rs 637 crore in February 2009. The financial information was prepared using internal management information system and had not been audited, reviewed and examined by an independent auditor.
Mahindra Satyam is a global consulting and IT services company, offering a wide array of solutions; from strategy consulting right through to implementing IT solutions for customers.
Source : http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=358027
