Satyam scrip recovers on buyback plans (Lead)December 18th, 2008 - 10:03 pm ICT by IANS
Mumbai, Dec 18 (IANS) Amid a rally at Indian equities markets, the Satyam scrip recovered somewhat Thursday, ending trade 7.15 percent higher than the previous close, thanks to the company’s plan to buyback shares. Satyam’s stock closed trade at Rs.169.35, up from the previous close of Rs.158.05.
Over 30 million shares of Satyam Computers fell Wednesday by 30 percent after the company’s failed bid to acquire Maytas Infra and Maytas Properties, infrastructure companies promoted by family members of Satyam chairman B. Ramalinga Raju.
The bounce back was owed to the overall upbeat investor sentiment, a buyback offer the company is mulling and attractive valuation of the stock at current trading levels of about Rs.169.
“At current valuations, the Satyam scrip seems attractive as the IT business seems to be doing fine. A probable buyback offer will also jerk up prices,” said an analyst with a leading brokerage firm.
In a notification to the Bombay Stock Exchange (BSE) Thursday, the Hyderabad-based software exporter said it had convened a board meeting Dec 29 to consider the proposal for buyback of shares.
“Based on input from our shareholders and investors, we decided to call off the Satyam-Maytas acquisition. Satyam has called this Board Meeting to consider the proposal for buyback of shares,” Satyam chief financial officer Srinivas Vadlamani in a separate statement.
However, there was no respite for Maytas Infra as it followed Wednesday’s trend, losing about 20 percent to close at Rs.310.65 Thursday.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 361.14 points or 3.72 percent from Wednesday’s 9,715.29 points to close at 10,076.43 points.