Satyam Computer Services Ltd is in a total mess with the Former Satyam Chairman B Ramalinga Raju surrendering before the andhra pradesh police under sections 120B, 409, 420, 468, 471. Along with him his brother and the companies CFO was also arrested on friday evening. The Securities and Exchange Board of India [SEBI] has ordered for an enquiry to look into this matter in detail.
Along with this news the most important point would be the stock prices dipping more and reached 6Rs/share which is seriously very low considering it was trading it 400-500Rs levels a year back. The stock prices clearly shows that the company has lost its value among the investors and everyone is looking to sell out.
I would recommend all the investors to still hold the stock because when they have already lost 90% of the value why not atleast risk with the 10%? If this 10% again grows back to atleast 30-40% after some days by chance in case of the take over/ acquitision then you have a better option rather than regretting in the future.
The stocks closed at 23.75Rs which is again 41% down from the last trading day and it was originally moving up from the 6Rs figure which means that there are still many people who believe in the company. The owners would be scammers but not the 53000 employees who worked hard in the company to fulfil their targets and there are numerious Saytam clients who are still willing to continue with the company and are ready to give contracts/orders.
The only problem would be that since the company is in a problem now, all their accounts would be siezed and even if the business operations are operated the payments would be struck. This is the reason the employees are in panic stage and have already started looking out for new job options in case the company is closed for a while.
One of the biggest Chartered Accountancy - PricewaterhouseCoopers which is highly reputed in India because there are thousands of students trying to get into PWC for completing their CA Course, is also in question because this firm was handling all the Satyam’s operations and if such a big scam was running around how did PWC not find out? Or were these guys also bribed by Mr Raju in tunes of crores of rupees and will this networked chain keep continuing?
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