Satyam bounces back into Group-A category stocks

Before a major scam broke out at the company over three years ago, Satyam figured among India's top IT firms

Mahindra Satyam, which in its pre-scam erstwhile form as Satyam Computer figured as one of the top blue-chip shares of the country, will once again become a Group-A stock on the BSE from the next week.

The country's leading bourse BSE broadly categorises the stocks in three groups -- Group A for top ranked shares, Group Z for penny stocks, Group T for those under serveillance or facing restricted trading and Group B for all others.

Currently, Mahindra Satyam is placed in the Group B, but would be moved back to Group A from October 8, the BSE said in a circular today.

Before a major scam -- the country's biggest ever -- broke out at the company over three years ago, Satyam Computer figured among India's top IT firms and was also part of the benchmark index Sensex. It was moved out of Sensex with effect from January 12, 2009 -- within days of its then Chairman B Ramalinga Raju admitted to major discrepancies at the company.

At the same time, the stock was also moved out of all other major indices of the BSE.

Later, Satyam Computer was acquired by Mahindra group, renamed Mahindra Satyam and is currently in the process of being merged with group's another IT firm Tech Mahindra.

Satyam's stock has been performing well in the recent past.

Along with Satyam, BSE today announced inclusion of 11 other stocks to the Group A, which include Multi Commodity Exchange of India (MCX), Bayer CropScience, Berger Paints, CESC Ltd, CORE Education & Technologies, DENA Bank, Jammu & Kashmir Bank, Jet Airways (India) Ltd, Madras Cements, McLeod Russel and Torrent Pharmaceuticals.

Besides, the BSE would move Alstom T&D India, Chambal Fertilisers & Chemicals, EIH Ltd, Fortis Healthcare, Gujarat Gas, Indiabulls Real Estate, Manappuram General Finance and Leasing, MOIL Ltd, Rashtriya Chemicals & Fertilizers, Ruchi Soya Industries and Welspun-Gujarat Stahl Rohren Ltd from Group A to Group B.

BSE also announced changes in its Mid-cap, Small-Cap, IPO and Shariah 50 indices with effect from October 8.

Those being excluded from Mid-cap index include Wockhardt, Bajaj Finserv, Shree Cements, SRF Ltd, Ballarpur Industries, Sterlite Technologies, Alok Industries, Elantas Beck India, Kalpataru Power Transmission, Spice Mobiles and Glodyne Technoserve Ltd.

Those being included in the mid-cap index include Allahabad Bank, Ybrant Digital, Tuni Textile Mills, DEN Networks, Solar Industries, Balrampur Chini Mills, Blue Circle Services and SpiceJet Ltd.

Besides, ONGC, Jindal Saw and BEML would be excluded from Shariah 50 index and would be replaced by Sesa Goa, Divi's Laboratories and SAIL.