Satyam Fiasco Takes A New Turn : Chairman And Managing Director B.Ramalinga Raju Resigns.

07 Jan

Posted by Shyam as Market News

Satyam computer services, India’s 4th largest software exporter has been in news for all the wrong reasons since the last fortnight. The failed Maytas infrastructure deal has taken its final toll today. In a major development, the Chairman and Managing Director of the company B Ramalinga Raju has resigned from his post today at around 11 AM. He has admitted to major financial wrong doings.

It was a big blow to the entire IT community when the news came in. Satyam board meeting was scheduled to be on Jan 10th 2009, when some action was to be taken. But it all happened days before that. He has admitted frauds of Rs 7,000 crores. Reacting to this major blow, Satyam share prices plunged down by 77% intraday to close at Rs 41 levels. Earlier in the day the stock prices almost kissed Rs 30 levels when the sentiments were badly hit. In the wake of this corporate tragedy (possibly the biggest one), Sensex has undergone a tailspin of about 749 points or 7.25% today to close at 9587 levels. Nifty also crashed by 6.6% today to close at 2920 levels, down by 192 points. We will follow up with this major development in the coming hours.