Mahindra-Satyam tanks 24% on NYSE on delisting announcement

Mahindra Satyam, formerly Satyam Computer, today said in a statement that it will delist from the New York Stock Exchange citing its inability to comply with US market norms.

The company would delist its American Depositary Receipts (ADRs) from the NYSE on October 14, it said.

Shares of Mahindra Satyam plunged as much as 24 per cent to USD 4.64 in the early morning on the NYSE.

The market capitalisation of the company is around USD 3.13 billion on the NYSE. Mahindra Satyam closed six per cent down at Rs 100.10 on the Bombay Stock Exchange today and lower by 5.78 per cent at Rs 100.30 on the National Stock Exchange.

Over 6.28 crore shares of the scrip changed hands at both the Indian bourses in today's trade.

The company anticipates that after delisting, the ADRs will continue to trade in the over-the-counter (OTC) market.

In addition, throughout this period and in the future the equity shares underlying the ADRs would continue to be listed on the Indian stock exchanges, it said.

Mahindra Satyam is scheduled to come out with accounts for financial years 2008-09 and 2009-10 on September 29.

The announcement of the results would provide a detailed picture of the financial health of the company which had been hit by a scam in January 2009.

The Board of Mahindra Satyam would review the audited accounts of the company and the same would be submitted to the Company Law Board (CLB).