Hyderabad cos face brunt of Satyam scam

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Hyderabad cos face brunt of Satyam scam

Several other Hyderabad-based companies have borne the brunt of the big Satyam scam. Nagarjuna Constructions, Megasoft are among the top losers. CNBC-TV18's Gautam Broker does some indepth number crunching.

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Several other Hyderabad-based companies have borne the brunt of the big Satyam scam. Nagarjuna Constructions, Megasoft are among the top losers. CNBC-TV18's Gautam Broker does some indepth number crunching.

Here is a verbatim transcript of Gautam Broker's comments on CNBC-TV18. Also see the accompanying video.

Scams like the one that happened at Satyam don't happen very often. But they leave deep scars in the minds of fund managers and investors. Fund managers often go by their instincts while investing in companies. When a scam like this happens, it remains in their memories and it becomes difficult for companies in that segment to raise funds etc.

The pain is clearly visible in the bourses. If you look at the companies based in Hyderabad, Nagarjuna Construction has lost almost 35%, IVRCL about 28%, and Megasoft - a company that is promoted by one of the promoters at Satyam C Srinivas Raju - has also lost significantly. Mold-Tek Technologies , and Prajay Engineers have all lost.

Some estimates suggest that Andhra based companies - there are 235 BSE listed Andhra-based companies - have lost more than Rs 35,000 crore in market cap since the Satyam scam happened, with Satyam accounting for more than Rs 10,500 crore.

It is not just restricted to the Indian bourses. Indian stocks listed on the American bourses also lost significantly - a loss of almost USD 2 billion in market cap ‑ because Satyam Computers did not trade on the NYSE.

The other 15 ADRs that did trade lost USD 1.94 billion in market cap till January 9. So, it has now become a scam of international proportions. This loss percentage is for the period between January 6 and January 9.