Larsen Jumps the Gun in Buying 4% into Satyam and sees Big Erosion of over 85% and over Rs 300 Crs inside just Two Days !…they must file an FIR against Satyam and it’s Chairman,Ramalinga Raju
Larsen was probably ill advised to buy a 4% Stake in Satyam at undisclosed price…Definitely over Rs 100 asY.M. Deosthalee told Dow Jones Newswires by telephone that the company acquired the stake over ten days ending Tuesday through its L&T Capital arm.
This would mean L & T Capital,through whom Larsen bought the Stake,paid Prices of between Rs 114 to Rs 180 which were the Low and High in Satyam over the days of the Purchase
Larsen now holds close to 2.70 crore shares in Satyam at Investment cost of over probably between Rs 350 crs to Rs 450 crs….On Wednesday,January 7,Satyam opened at Rs 175 but closed at Rs 40 after Ramalinga Raju’s Confession of a massive Fraud…Today Satyam has sunk even lower to Rs 20…Larsen’s holding in Satyam is worth just Rs 54 Crores inside days…It has lost over 85 % and @ over Rs 300 crs notionally inside two days !…it will have to mark the investment to market
If Satyam ceases to exist,so will it’s Equity and Larsen would have lost over Rs 350 crs
Larsen just jumped the Gun Here !…Sure some in Larsen will lose their Jobs !
They were clearly ill advised to take this Risk and Methinks should take the Lead in Filing a FIR against Satyam and Ramalinga Raju for the Fraud and even the auditors for not spotting the Asset Hole
There is also the grave posssibility that L & T Capital may have picked up the same 4 % of Equity sold by the Lenders to Ramalinga Raju on his pledged shares…If this is so,then Ramalinga Raju may have awaited this sale at High Prices before releasing his Confession Letter on January 7,2009
Larsen must not let Satyam and Ramalinga Raju get away with this !
The Share Price of Larsen has also eroded by 15% to below Rs 700 in quick time