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Satyam’s Tryst With Truth: Timeline

08 January, 2009

How the Satyam saga will play out, remains unknown. Let’s try and look at the unprecedented set of events which led Ramalinga Raju, Chairman, Satyam unearthing the biggest corporate scandal in the Indian history.

December 16, 2008 – Announces Acquisition of 100% stake in Maytas Infrastructure and Maytas Properties, owned by the promoter S Ramalinga Raju’s two sons, for $1.6 billion.

December 17, 2008 – Aborts the deal citing investor opposition to the deal.

December 18, 2008 – Announces a board meeting on December 29 to consider buyback of shares to appease the outraged shareholders.

December 21, 2008 – Govt asks registrar of companies to submit the report the factual evidence with Satyam-Maytas deal.

December 23, 2008 – World Bank bars Satyam for 8 years over bribery charges stating that Satyam offered “improper benefits” to the bank staff. The firm’s shares further fall 14% to its lowest in 4 years. 

December 25, 2008 – Demands apology from the World Bank and asks it to immediately withdraw inappropriate statements.

December 26, 2008 – Independent director on Satyam’s board, Mangalam Srinivasan resigns taking moral responsibility for voting in favour of the controversial acquisitions.

December 27, 2008 – Postpones Board meeting scheduled for December 29 to January 10, 2009 to consider buyback of shares.

December 28, 2008 –  Krishna Palepu, Vinod Dham and Mendu Rammohan Rao – the three independent directors resign from the board without officially giving any reason.

December 28, 2008– Satyam share prices increase by 9.4%.

December 29, 2008 – Appoints DSP Merrill Lynch as a merchant banker to review and suggest a plan to increase shareholder value.

December 30, 2009– Indian School of Business dean M Rammohan rao also quits Satyam’s board.

December 31, 2008 – Reports of HP eyeing stake in Satyam surfaces. 

January 2, 2009 – Promoter stakes in Satyam falls to 5.13% from 8.27%.

January 2, 2009– Discloses to stock exchange that Raju and his family have pledged all their shares, held in a corporate entity SSR Limited, to institutional lenders.

January 3, 2009– Ramalinga Raju’s stake in Satyam falls to 5.13% from 8.27% as lender sells shares.

January 5, 2009 – Reports of Satyam exploring options of mergers with other IT companies to avert takeover by another firm come out. Satyam shares fall 9%.

January 6, 2009 – S Ramalinga Raju’s stake further falls to 3.6% from 5.13%.

January 6, 2009 – Satyam shares rise over 7% on the news reports of IT firm Tech Mahindra offering Satyam a cashless merger.

January 6, 2009 – IL&FS Trust company sells 24.52 million shares in Satyam, pledged to institutional investors by the promoters. 

January 6, 2009– Late night, Satyam I-banker DSP Merrill Lynch had told SEBI of serious account flaws while carrying out a due diligence exercise on satyam.

January 6, 2009– Satyam’s Raju left with no option than to be forced to confess.

January 7, 2009 – Chairman S Ramalinga Raju admits commiting fraud in a letter to the board and resigns from the board. DSP Merrill Lynch ends its engagement with Satyam.

January 7, 2009– Crime Investigation Department to probe into Satyam fraud

January 7, 2009 – Ramalinga Raju goes missing. Raju became incommunicado after sending a letter to Satyam board Wednesday morning.

January 7, 2009– ICAI to issue a show cause notice to Satyam auditors, PwC

January 8, 2009– Satyam will hold a press conference at its headquarters in Hyderabad today evening.

Collated by Ruchika Sharma


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Satyam’s Tryst With Truth: Timeline

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