Mahindra Satyam Fails To Meet The NYSE Deadline

September 29th, 2010 - 11:06 pm ICT by GD  

By Meena Kar
mahindra-satyam1Sep 29, (THAINDIAN NEWS) The Sensex of IT firm Mahindra Satyam fell almost 9 percent, as it declared late Friday, that it would delist itself from the New York Stock Exchange this October. Mahindra Satyam which failed to comply to the deadline set by New York Stock exchange on Nov 15, that demanded a fiscal report of the year 2009, prompted the company to take the decision.

At 9:45 AM, the nifty was raised by 25 points and 0.42 per cent at 6043.30. the bench mark opened at 6018.30. it touched about 6067.35 for 50 share index in the early hours but things got worse from the latter part of the day. Mahindra Satyam will delist its American Depositary Receipts (ADRs) from the NYSE on October 14, as the company reportedly cannot restate US-GAAP financial statements for the period between March 31, 2009 till October 15. Therefore the company’s sensex ended with 148 points decrease today.

In any case the company has been suffering from financial hazards ever since the biggest corporate scam was busted. Its stock value has been improving ever since the the Mahindra acquisition occurred. With the news of its withdrawal from the New York Stock Exchange, total volume of shares traded today was decreased by 10.13%, which comes to almost 29,278,046, which is very less when compared to the share traded in the last 22 days, which was 32,576,961 on an average. Today, when the day started, the stock price of each share was Rs.100 in the Bombay Stock Exchange. By the afternoon, it reached the day’s high by reaching Rs102.45. However it ended with Rs98.35.

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