Satyam recovers from day's low; gains 5 pc on bourses

Shares of beleaguered Satyam Computer Services on Tuesday, closed with gain over five per cent on the bourses after the company said that it is receiving offers from domestic and foreign companies for a possible takeover.

Amid a volatile trade, the scrip of the company settled higher by 5.50 per cent at Rs 26.85 on the Bombay Stock Exchange. During the day the shares had surged by 8 per cent to Rs 27.50.

The scrip had plunged over nine per cent in the early trade following the report of the Registrar of Companies that the ex-promoters and top officials of the Hyderabad-based IT firm may have indulged in insider trading.

Marketmen said Satyam shares bounced back on reports that the company's clients such as GE and Malaysia Airlines confirmed that they would continue to use the services of the tainted IT firm.

Earlier on Tuesday, Tarun Das, one of the members of the six-member government appointed board of Satyam, saying that the IT firm has been approached for buyouts by both international and Indian IT firms also boosted the stock.

Besides, there have been unconfirmed reports that the company might soon appoint investment bankers to advise on a merger or sale.

On the National Stock Exchange the scrip surged by 5.29 per cent to close the trade at Rs 26.85. During the trade the scrip had jumped to an intra-day high of Rs 27.50, up 7.84 per cent over previous close on the exchange.

Satyam was one of the top traded counters with over 12.65 crore shares getting traded on the bourses.