The announcement was made after market hours on Tuesday, 17 November 2009.
Meanwhile, the BSE Sensex was down 29.80 points, or 0.17%, to 17,020.85
On BSE, 14.26 lakh shares were traded in the counter as against an average daily volume of 78.55 lakh shares in the past one quarter.
The stock hit a high of Rs 104.50 and a low of Rs 101.85 so far during the day. The stock had hit a 52-week high of Rs 266 on 17 November 2008 and a 52-week low of Rs 11.50 on 9 January 2009.
The stock had underperformed the market over the past one month till 16 November 2009, falling 6.79% as compared to the Sensex's 1.68% fall. It also underperformed the market in the past one quarter, rising 3.73% as compared to the Sensex's return of 10.52%.
The large-cap software company has an equity capital of Rs 235.13 crore. Face value per share is Rs 2.
The current price of Rs 103.45 discounts the company's Q2 September 2009 annualised EPS of Rs 35.48, by a PE multiple of 2.91
Mahindra Satyam in a statement to the stock exchanges said that it had replied to the legal notices on 14 November 2009, stating that the claims were legally untenable.
Mahindra Satyam had received legal notices from 37 companies a day after B Ramalinga Raju confessed to the Rs 7,000-crore accounting fraud on 7 January 2009. Raju, in his confession statement, said he owed Rs 1230 crore to some of the privately-owned companies of the Raju family who had loaned out money to the IT firm. He said the amount was an understated liability and was not stated in the books of the firm that were cooked for seven years.
Mahindra Satyam, while disclosing the financials for October-December 2008 quarter and the first two months of 2009, had said that the 37 companies had made claims totalling Rs 1,230 crore from it. The company then said it didn't acknowledge any of these claims as the matter was being investigated.
On 13 November 2009, Larsen & Toubro (L&T) pared a third of its stake in software firm Mahindra Satyam. L&T sold 2.72 crore shares in Mahindra Satyam in two bulk deals at an average price of Rs 113.65 on the BSE. The shares sold by L&T were bought by foreign fund Nomura.
Prior to the deal, L&T held a 6.9% stake or 8.11 crore shares in the Hyderabad-based software exporter. L&T had 12.04% holding in Mahindra Satyam, which subsequently got diluted with fresh issue of shares to Tech Mahindra.
L&T had also made an abortive bid to acquire the company. However in April 2009, Tech Mahindra, a part of the Mahindra group, acquired a controlling stake in the scam-tainted company, and renamed it Mahindra Satyam.
Following Raju's confession to perpetrating India's biggest corporate fraud, the Indian government had superseded Satyam's board appointing its nominees to monitor the fraud-struck firm's bidding process. The fraud is still being investigated by the Central Bureau of Investigation, the country's apex investigation body.
Mahindra Satyam, in early November 2009, won an IT outsourcing contract from Swedish defence and aerospace firm, Saab, to develop solutions in India for the global defence and homeland security market.
Mahindra Satyam and Saab have already initiated moves to set up a Centre of Excellence for Network Centric Warfare. One of the activities under this initiative is that Mahindra Satyam and Saab will jointly address the battlefield management system (BMS) for the Indian Army.
Mahindra Satyam posted net profit of Rs 181 crore on revenue of Rs 2,294 crore in Q3 December 2008. The company posted a profit of Rs 4 crore on revenue of Rs 681 crore in January 2009 and net profit of Rs 52 crore on revenues of Rs 637 crore in February 2009. The financial information was prepared using internal management information system and had not been audited, reviewed and examined by an independent auditor.
Mahindra Satyam is a global consulting and IT services company, offering a wide array of solutions; from strategy consulting right through to implementing IT solutions for customers.