Satyam surges 17% as board takes corrective measures

Beleaguered Saytam Computer surged as much as 17 per cent on the Bombay Stock Exchange on Wednesday after the company's board took a step ahead to arrange funds for the tainted IT firm.

Shares of Satyam opened on a firm note and touched an intra-day high of Rs 55.15, up 16.96 per cent on the BSE.

The six-member board of the IT firm had ruled out selling portions of the company's business on Tuesday, even as it appointed a management advisor and two investment bankers for the company to show the way forward.

The board appointed Goldman Sachs and Avendus as investment bankers, which will explore various strategic options that will include identifying strategic investors and obtaining Expressions of Interest.

Similarly, on the National Stock Exchange, the scrip traded on the positive territory to touch a high of Rs 55.25, up 16.93 per cent. Over 11.50 crore shares changed hands on the bourses.

"A sale of parts of Satyam at this stage would be contrary to the mandate of regulating the affairs of Satyam as a going concern as stipulated by the Government. It is, therefore, not an option evaluated by the company," Satyam Board member TN Manoharan said.

The company said it has also appointed Boston Consulting Group as management advisor to support the directors and leadership team. A three-member dedicated team from BCG would work closely for the revival of the company.

Satyam was later quoting at Rs 52.30, up 10.92 per cent on the BSE and at Rs 52.05, up 10.16 per cent on the NSE.