Satyam up 14% on hopes of positive news from board

Beleaguered Satyam Computer surged over 15 per cent in the morning trade on the Bombay Stock Exchange amid expectations that the company's board would announce some positive moves when the meeting finally ends today.

Shares of Satyam surged 19.08 per cent to a high of Rs 35.25 on the BSE. It was later trading at Rs 33.85, up 14.36 per cent over previous closing.

The six-member board of Satyam Computer met yesterday for the third time since last week to discuss ways and means to raise funds for the company and find a CEO and a CFO to run the firm.

The meeting is also expected to deliberate on class action lawsuits filed against the company in the US.

Similar movement was witnessed on the National Stock Exchange where the scrip surged 19.09 per cent to an intra-day high of Rs 35.25. It was later quoting at Rs 33.95, up 14.70 per cent over last close. Over 10.28 crore shares changed hands on the bourses.

Analysts believe that the investor sentiment was up amid expectations that the newly appointed board would come up with some positive move to salvage the company from the damage inflicted on by its ex-promoters.

Board member Deepak Parekh had on Wednesday said that the board had received 40 applications for the post of CEO. Besides, the company was also considering mortgaging assets like real estate to raise cash from banks, he added.

The board, appointed by the government to run the firm after a shocking Rs 7,800 crore fraud disclosure by founder Ramalinga Raju on January 7, last met on January 17.