TechLahore

With Mahindra's stock hitting new lows, the Satyam "bailout" has turned out to be a disaster for Tech Mahindra

The Satyam scandal just doesn’t stop unfolding. And with every successive twist the story takes, the magnitude of the disaster seems to get amplified and the corruption appears wider and increasingly more unfathomable.

There have been two developments recently which we felt were an important follow-up to the coverage TechLahore has given the Satyam story in the past.

First, Bloomberg reports that investigators have uncovered that the magnitude of this outrageous con was actually 40% larger than earlier believed. A further $607 Million in fraudulent transactions/slush funds etc. have been uncovered. Who knows how deep the rabbit hole goes here!

Second, Forbes has granted Mr. Raju an eternal place in its hall of shame by placing him on their “Most Outrageous” list.

So, the question is, now that Tech Mahindra has bought Satyam, are all their troubles over? Is this just history now? Well, not quite. The latest Forbes report on the subject advises that all of Tech Mahindra, which just hit a 4-month low, has now become a “risky bet” as “whatever Raju said, is not the complete reality”. Well, if that doesn’t scare the bejeezus out of investors, I don’t know what will!