Mahindra Satyam shares spurt ahead of results review
22 Sep 2010
Shares of information technology services firm Mahindra Satyam rallied for a second day today as investors awaited financial results at the firm that was hit by India's biggest corporate scandal nearly two years ago.
The rally followed a spurt in its American depository receipt (ADR) by 6.14 per cent to $5.53 on the New York Stock Exchange on Tuesday.
The shares climbed as much as 5.4 per cent, adding to a more than 7 per cent rise on Tuesday when the company said its board would review its audited financial results for fiscal years 2009 and 2010 on 29 September.
The stock hit a high of Rs100.40 and a low of Rs96.10 so far during the day. The stock had hit a 52-week high of Rs123 on 22 September 2009 and a 52-week low of Rs78.55 on 31 August 2010.
The stock had outperformed the market over the past one month till 21 September 2010, gaining 13.06 per cent compared with the Sensex's 8.69 per cent jump. But it underperformed the market in past one quarter, rising 10.88 per cent as against 11.89 per cent rise in the Sensex.
The software outsourcer has an equity capital of Rs235.27 crore. Face value per share is Rs2.
The ADR spurted after Mahindra Satyam said it will come out with accounts for two financial years of 2008-09 and 2009-10 on 29 September. The announcement of the results will give a clear picture of the financial health of the tainted company that was hit by the Rs7,126-crore fraud in January 2009.