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| Mahindra Satyam in three-digits, zooms 14% |
| Sohini Sen / Mumbai Jul 23, 2009, 16:08 IST |
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Mahindra Satyam has crossed the Rs 100-mark, after a gap of over six months today. The stock has soared over 800% from its 52-week low of Rs 11.50 on the BSE, and around 42% in thelast three weeks following failure of the open offer by Tech Mahindra.
The stock had slipped from Rs 176 on January 6, 2009 to Rs 40 the next day. Thereafter, the stock had not been able to touch the Rs 100-mark, even as it tried to recover.
The software company had collapsed after founder and Chairman, B Ramalinga Raju confessed to corporate fraud on January 7, 2009. Raju had overstated its cash reserves by over Rs 7,000 crore.
On January 7 itself, the stock had touched a high of Rs 189 and plunged 84% to a low of Rs 31. Two days after that, on January 9, the stock slipped further to a low of Rs 11.50. On January 15, 2009, the stock crashed to its lowest close in all these months at Rs 20.
However, the stock started recovering after the government nominated board invited bids from prospective buyers. The stock moved in a broad range of Rs 40 - 60, in the period February to May, 2009.
Eventually, Tech Mahindra was declared the winner with its bid of Rs 58 per share, thereby infusing Rs 1,757 crore in the company for 31% stake. Following which, the acquirer made an open offer at the same price.
The open offer however failed, as Tech Mahindra was able to only buy 0.1% stake in the proposed 20% open offer. The stock during the open offer period, June 12 to July 1, moved in a range of Rs 70 - 80.
Today the stock opened at Rs 93 and touched a high of Rs 107, an over 800% jump from its 52 week low of Rs 11.50. It has touched the three-digit mark after 130 trading days. It finally ended at Rs 104, up 14.2% from the previous close. However, it still remains 76% lower from its 52-week high of Rs 439.
The stock topped both the combined value and volume chart today with trades of over 53.46 million shares and a turnover of Rs 1,704.36 crore.
The current buying at the counter is attributed to market speculation of a possible revised open offer from Tech Mahindra.
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