Satyam Computer Services today (Monday, Dec 29) gained nearly fifteen percent (15%) on the Bombay Stock Exchange (BSE) after the company said it will mull over a possible business restructuring in its board meeting, now postponed to January 10, 2009.

The scrip opened strongly at Rs 133 and moved upwards to Rs 156.60, up 15.6%, from the last closure on the Bombay Stock Exchange (at 2:29 pm).

In a report issued late on Saturday evening, the IT major stated that the board would also consider measures to beef up company’s governance structure, which includes raising the size and changing the board composition, conducting a evaluation of the company’s strategic alternatives to improve shareholder value.

Satyam has engaged DSP Merill Lynch to assist in this review.

Marketmen said that the available cash in the company’s balance sheet is holding capitalists on to the scrip, hence there is some positive buying in the scrip.

Ashika Stock Brokers Research Head Paras Bothra said, “Market is expecting some positive trend in the scrip as vested buying is emerging. Investors are expecting some Private Equity infusion in the company or an aggressive buyback plan.”

On the National Stock Exchange (NSE) (at 2:29 pm), the scrip touched a high of Rs 156.70, up 15.5% over previous close.
 
Satyam has seen its shares drop by about 40% since a botched attempt two weeks ago to buy Maytas Infrastructure and Maytas Property - both promoted by Satyam's chief Ramalinga Raju's sons.

Satyam’s share buyback plan was an apparent attempt to calm investors left fuming after the failed $1.6-billion bid to get hold of two infrastructure firms in which management held stakes.

The company had come under fire from stockholders as well as investors, mainly financial institutions, questioning the principle following the company's terminated move to buy Maytas Infra and Maytas Properties.