Mumbai, Jan 07: IT major Satyam Computer on Wednesday nosedived nearly 70 percent to an all-time low of Rs 58, following the resignation of the company's Chairman B Ramalinga Raju and Managing Director B Rama Raju.
Shares of Satyam plunged as much as 67.71 percent to a low of Rs 58, but was later trading at Rs 73.50, down 58.96 per cent in the afternoon trade on the BSE.
The scrip, which had opened at Rs 179.10, plunged within minutes of Satyam Chairman and Managing Director tendering their resignation.
Raju had been under attack over the 1.6-billion-dollar acquisition fiasco of firms promoted by his family.
The counter saw frantic selling after the announcement and nearly 13 crore shares had changed hands on both the bourses within an hour.
Satyam stock holds a 1.56 per cent weight in the 30-share bluechip index Sensex. Following the same, the benchmark index also plunged over 400 points and was trading down nearly 4 per cent at 9,922 points in the noon trade on the BSE.
The resignations, ahead of the January-10 board meeting, has pushed the company into crisis and paved the way for immediate restructuring of the board and the management.
On the National Stock Exchange, the scrip plunged 55.63 per cent to an all time low of Rs 79.40. It was later trading at Rs 80, down 55.29 per cent in the afternoon trade.
In a regulatory filing, the company said Raju would continue to be the chairman till the board is expanded.
Satyam founders' stake falls to 5.1% from 8.3%
Meanwhile, the stake owned by founders of Satyam Computer Services has fallen by a third to just 5.13 per cent, according to the Indian outsourcer.
Analysts said a lower stake held by founders makes the company a more attractive takeover target for private equity or global information technology firms, as investors demand a change in the embattled firm's management team.
The stake owned in India's No 4 software services exporter by SRSR Holdings, in which the founders had accumulated their shares, has been diluted from 8.27 per cent in November, Satyam said in a disclosure to the stock exchange, without giving details.
Shares in Satyam plummeted last month to a five-year low after its botched attempt to buy two construction firms in which Satyam founders held stakes and after news it had been barred from World Bank business.
Satyam had said earlier the founders' stake might have been diluted as institutional lenders to whom they had pledged their shares exercised options to cover margin calls.
The company has said it will hold a board meeting on Jan 10 to consider options to improve shareholder value and corporate governance, leading to speculation of a possible stake sale or takeover bid.
Bureau Report
zee