Satyam at an all-time low of Rs 58 - down 70%

IT major Satyam Computer today nosedived nearly 70 per cent to an all-time low of Rs 58, following the resignation of the company’s Chairman B Ramalinga Raju and Managing Director B Rama Raju.Shares of Satyam plunged as much as 67.71 per cent to a low of Rs 58, but was later trading at Rs 73.50, down 58.96 per cent in the afternoon trade on the Bombay Stock Exchange.The scrip, which had opened at Rs 179.10, plunged within minutes of Satyam Chairman and Managing Director tendering their resignation.

Raju had been under attack over the $1.6-billion acquisition fiasco of firms promoted by his family.The counter saw frantic selling after the announcement and nearly 13 crore shares had changed hands on both the bourses within an hour. Satyam stock holds a 1.56 per cent weight in the 30-share bluechip index Sensex. Following the same, the benchmark index also plunged over 400 points and was trading down nearly 4 per cent at 9,922 points in the noon trade on the BSE.

The resignations, ahead of the January-10 board meeting, has pushed the company into crisis and paved the way for immediate restructuring of the board and the management.On the National Stock Exchange, the scrip plunged 55.63 per cent to an all time low of Rs 79.40. It was later trading at Rs 80, down 55.29 per cent in the afternoon trade.In a regulatory filing, the company said Raju would continue to be the chairman till the board is expanded.

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Satyam has loose Rs 10,000 Cr in Market Capitalization

Beleaguered software services major Satyam Computers on Wednesday bit the dust on the bourses and lost as much as Rs10,000 crore in market capitalisation (m-cap) in a single trading session, after the scrip dipped to hit an all-time low level.

It saw a massive value erosion and fell nearly 80%, after the management revealed malpractices in accounting methods. The company had a market capitalisation of Rs12,067.98 crore on Tuesday and by the end of Wednesday’s trading session its m-cap stood at Rs2,691.88 crore.

The scrip, which fell by as much as 83% to witness an intra-day low of Rs30.70, managed to close with a fall of 77.69% at Rs39.95 on the BSE index.

“In the long run the scrip can witness levels down to as much as Rs20. The company was operating at a margin of 3%, the lowest by any firm. It was doing business on cost basis and the books were kept inflated,” Arun Kejriwal of Kejriwal Reserach and Investment Services said.

On the National Stock Exchange (NSE), the scrip plunged to a low of Rs41.05, down 77.06% from its previous close. The scrip had witnessed the day’s low of Rs30.80, down 82.78% over last closing.
The counter saw frantic selling after the news broke out, and over 48 crore shares had changed hands on both the bourses.

Satyam stock holds a 1.56% weight in the 30-share bluechip index - Sensex. Following the same, the Sensex also plunged over 749 points or over 7% to settle at 9,586 points on the BSE.

Ramalinga Raju, on Wednesday resigned as Satyam’s chairman after admitting to financial wrong doings in the company’s balance sheet. He was under attack over the $1.6 billion acquisition fiasco of firms promoted by his family.

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RIL board approves 1:1 bonus issue

Reliance Industries has informed BSE that the Board of Directors of the Company at its meeting held on October 07, 2009, inter alia, has recommended, subject to the approval of the shareholders, issue of Bonus shares in the ratio of one equity share of Rs 10/- each fully paid up for every one equity share of Rs 10/- each of the company. India's largest private sector refiner has issued bonus shares after 12 years. The last time it issued 1:1 bonus was on September 13, 1997. Further, the Board has declared a dividend of Rs 13 (Rupees thirteen only) per fully paid-up equity share of Rs 10/- each.

Reliance Industries declared its audited FY09 results, including Reliance Petroleum's (RPL) numbers. The company's consolidated net profit was at Rs 15,296 crore versus Rs 19,523 crore. Its consolidated net sales were at Rs 1.51 lakh crore versus Rs 1.37 lakh crore.

Reliance Industries bonus history

Year Ratio
1997 1:1
1983 3:5
1980 3:5

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DSP Merrill Lynch detachs from Satyam Computers

Satyam’s Chairman B. Ramalinga Raju finally resigns and has admitted all the frauds that he has done till now. raju has taken full responsibility of the current situation of Satyam.Satyam Computer Services Ltd has also informed BSE that the DSP Merrill Lynch terminated its engagement with the Company.

It comes an an extreme shock to the corporate Inc. which failed to recognize such deep frauds cooking up since many quarters now. The auditor’s role has come into question and deep scrutiny.

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