Satyam soars 10pc on tax row settlement report

Mahindra Satyam surged over 10 per cent amid reports that the company is in advanced stages of resolving the tax dispute with its British client Upaid.

Shares of Mahindra Satyam (formerly known as Satyam Computers) closed at Rs 93.65, up 9.92 per cent on the Bombay Stock Exchange, after soaring 11.26 per cent to touch a-month high of Rs 94.80, even in a flat broader market index Sensex that settled flat at 17,755.94 points, or up 6.25 points.

But, when contacted Mahindra Satyam official said there is no new development in the tax liability case with Upaid and declined to comment on the stock movement.

"The stock has shown a great upsurge with huge volumes which is a definite indicator of some positive development in the counter. I expect the share to move further on a positive side," SMC Global vice-president Rajesh Jain said.

The share gained on huge volumes with about 6.35 crore shares changing hands on both the bourses.

On February 23, Mahindra Satyam had filed a lawsuit in a New York court against its former English client Upaid, seeking to make it solely responsible for any tax liability arising from an out-of-court settlement reached by them.

Last December, Satyam had offered to settle all disputes with Upaid Systems over licence of intellectual property, among others, by paying USD 70 million to this England-based provider of mobile and online payment-transaction services.

On the NSE, the shares rose 10.22 per cent to Rs 93.80.