CAduniya.com : CA India Blog

Satyam was - one of the favourite large-cap stocks for investors. I am left wondering - if such things happen in a large-cap company, which is one of India’s top…What is going on in others? But there is one thing - this further makes us understand what risk of Equity investing actually is… No company is safe.

This could be just the tip of the iceberg, god knows who else in Satyam is involved and its the investors who take the grunt.

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Also Read Satyam actual letter from Mr. Ramalinga Raju to its board directors admitting fraud

In the country’s biggest corporate fraud involving about Rs 8,000 crore, iconic IT company Satyam was on Wednesday hurtling towards Satyam’s board members.

Five facts about Satyam disaster following the shocking disclosure of accounts fudging by its founder Ramalinga Raju, who then quit as chairman - leaving an uncertain future for the company and its 53,000 employees.

By the end of the day, the fourth largest IT company lost a staggering Rs 10,000 crore in market capitalisation as investors reacted sharply and dumped shares, pushing down the scrip by 78 per cent to Rs 39.95 at BSE. The NYSE-listed firm could also face regulator action in the US.

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MUMBAI: In possibly the biggest single day fall for a stock, Satyam Computer Services lost 77 per cent to end at Rs 40.25 on NSE. The stock’s woes began in December after the company’s promoters made a $1.6-billion bid for Maytas Properties and Maytas Infrastructure promoted by Chairman B. Ramalinga Raju’s son.

However, adverse market reaction, which saw the company’s ADR take a knock of 54.5% to $5.70, made the company call off the proposed acquisition. At the time, Chairman Raju evinced surprise saying he was “surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition.”
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