Satyam Computer Services, India’s fourth largest IT firm with more than 51,000 employees, today plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman. Raju admitted to major financial wrong-doings and talked about his last minute efforts to fill the "fictitious assets with real ones" through the failed Maytas acquisition.

16 Dec 2008: Satyam cancels plans to buy two builders for $1.6 billion just 12 hours after announcing the deal due to investor pressure. Analysts question the motives of Satyam’s top executives as they hold stakes in Maytas Infra and in Maytas Properties.

17 Dec 2008: Satyam stocks fall by a third following turn of events as shareholders blamed the company for its total disregard for corporate governance. Chairman B. Ramalinga Raju says the deal was called off due to investor reaction.

18 Dec 2008: Satyam says its board will meet on 29 December to consider a proposal for buyback of the company’s shares.

23 Dec 2008: The World Bank bars Satyam from from doing business with it for eight years for providing “improper benefits to bank staff” in return for contracts and for lack of documentation on invoices. Satyam shares fall another 14 per cent to their lowest in more than 4½ years.

24 Dec 2008: Takeover rumours circulate about Satyam being a takeover target due to fall in share price. Share price improves.

25 Dec 2008: Satyam objects to World Bank’s statement and wants the bank to withdraw its “inappropriate” statements.

26 Dec 2008: Satyam receives yet another setback as Mangalam Srinivasan, an independent director resigns.

28 Dec 2008: Satyam postpones its board meeting scheduled for Dec 29 to Jan 10 to discuss a proposal for buy-back of shares by promoters.

29 Dec 2008: Three more directors resign from Satyam’s board fuelling rumours that the number may go up. Shares improve on hopes about improvement of shareholder value and corporate governance.

30 Dec 2008: One of two remaining independent directors of Satyam says he would stay on the board. Shares improve.

02 Jan 2009: Satyam says its founder’s stake fell by a third to 5.13 per cent. According to analysts this indicates the company is an attractive takeover target.

05 Jan 2009: Satyam shares fall 9 per cent amid apprehension that corporate governance concerns could affect new business.

06 Jan 2009: Shares improve due to reports that Tech Mahindra approached Satyam for merger.

07 Jan 2009: All hell breaks loose with Satyam chairman B Ramalinga Raju’s resignation and confession of fraud. “It was like riding a tiger, not knowing how to get off without being eaten”, said Raju. Sensex tanks 825 points to 9510.15 as investors spooked by Satyam Computer fraud revelation; Satyam stocks fall to Rs 32 a piece from Rs 178.95. X
 

Check Out
Ramalinga Raju resigns from Satyam board
SFIO to probe Satyam irregularities