Since the news of Ramalinga Raju, Chairman of Satyam Computers has resigned from the board. The market is been speculating what will happen to the share price and the more that 50K employees of the company.
Most of the market participants expressed shock to the news and reacted sharply to the news, some feel the companies share price may come down as low as Rs,10. Meanwhile some feel the company’s book value has nothing in it
In his letter to the board, Raju admitted that the IT major’s balance sheet has inflated cash and bank balance of Rs 5,040 crore. “No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.”
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On the news of Ramalinga Raju, Chairman of Satyam Comaputer Ltd, has resigned from the board, and crash of share price in Indian markets has brought the companies ADR down by 84% in pre market trades.
Raju, in his letter recommend Ram Mynampati to act as an interim CEO.
In his letter to the board, Raju admitted that the company’s balance sheet has inflated cash and bank balance of Rs 5,040 crore. “No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.”
Even as the both Center and State the Govt. have order the probe in to the full saga,
Industry leader feel the government and the regulator must take strict action so the impact of Satyam problem will not be on the other Indian IT companies.
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PSTL today informed the stock exchanges that Mr.Nirmal Kotecha who is one of the promoters has sold nearly 6% stake in open market on Dec 22 and 23.
The trades are reportedly carried through different stock brokers like India Bulls, Kotak Securities, JM Financials. Most of the sale orders were executed in early morning trades when PSTL shares were under upwards freeze.
PSTL saw good buying on the news that SEBI has written to the company to make open offer at Rs.250 when the share price was trading at Rs.80. but the share price has lost nearly 50% since the company has denied the receiving any letters form SEBI.
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SEBI acts again,
The Securities and Exchange Board of India, or SEBI, has hiked the creeping acquisition limit to 75% from current 55%.
Promoters could earlier not do creeping acquisition beyond 55%. Now, they can buy up to 5% every year till the 75% limit is hit. The market regulator said creeping acquisition beyond 55% will only be through open market normal segment and not bulk deals.
This move has can be seen has positive for the markets and will send positive singles in markets.
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In order to increase the capital inflows in Indian markets today SEBI chairman Mr. C. B. Bhave has announced changes in P-notes policy. SEBI today scraped a rule which allowed P-notes could only account for upto 40% of the value of assets foreign fund, he also said entire framework for FII participation needs to be reviewed.
As per Oct 2007 decision FII’s were expected to bring down total p-notes issuance to 40% of their total assets before march 2009. However Mr. Bhave himself told the reporters that FII issuance of P-notes has already come down substantially and thus today’s decision may not make any immediate difference to FII position.
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Daiichi Sankyo is planning to acquire up to 9.21 crore shares at Rs 737 each through the open offer. The Japanese company had announced earlier that it was buying out 34.81 per cent stake in Ranbaxy held by the Singh family. It will also acquire 9.5 per cent through preferential allotment of equity shares and another 4.5 per cent through share warrants to be issued on a preferential basis. Daiichi Sankyo’s stake in Ranbaxy could go up to 58 per cent after the open offer. The entire deal is valued at $3.4-4.6 billion.
However this would increase the stake of Daiichi by 20% in Ranbaxy. Ranbaxy’s share price went up 2.8 per cent to close at Rs 524 on Monday after the final word from SEBI.
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CB Bhave, Chairman of National Securities Depository Ltd, will be the new chief of market regulator SEBI and will replace incumbent M Damodaran.
Bhave, who had earlier served both in the Finance Ministry as well as SEBI, is expected to take charge after Damodaran term ends on February 17, sources said.
There was, however, no official confirmation on the appointment that is believed to have been decided last night after Finance Ministry reportedly took up the issue with the Prime Minister’s Office.
A notification on the appointment of the new SEBI Chairman is expected to be announced shortly. The name of Bhave, along with that of UTI Asset Management Company (AMC) CMD UK Sinha, Canara Bank CMD MBN Rao and Ministry of External Affairs Additional Secretary J Bhagwati, was doing the rounds as a possible successor to Damodaran.
Source: Hindustan Times 14/02/08
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