The Supreme Court will hear on Monday a plea by Midas Touch Investor Associations seeking compensation of nearly Rs 5,000 crore for three lakh retail shareholders in fraud-hit Satyam Computer Services. Shares of Satyam had taken a big jolt of 78 per cent after the company hit headlines for the multi-crore rupee accounting scam in January this year. Satyam scrip had plunged to a level of Rs 39 a share from Rs 179 on the Bombay Stock Exchange following the fraud came to light. Satyam Computer has since been taken over by Tech Mahindra,which paid Rs 1,756 crore for acquiring 31 per cent through an open auction conducted by government-appointed board of the company. Tech Mahindra quoted Rs 58 a share to outbid others,including Larsen and Tourbo,which quoted Rs 48 a share. However,the mandatory open offer of 20 per cent at the same price of Rs 58 a share had received a lukewarm response as the scrip had improved to a level of Rs 78-80 per share. Tech Mahindra increased its stake in Satyam to 42 per cent via a second round of preferential allotment,which again was at the price of Rs 58 a share,Satyam closed on Thursday at Rs 108 on BSE. Kanpur-based consumer protection organisation Midas Touch had earlier moved a consumer court seeking compensation for retail shareholders. However,the National Consumer Disputes Redressal Commission (NCDRC) had expressed its inability to take up the plea.
