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Tracking a short-lived joyride

BL Research Bureau

THIS is the dramatic tale of the rise and fall of the Cyberspace Infosys stock, which has been the thrust of the CBI action against the UTI top brass as well as its former chairman, Mr P.S. Subramanyam.

Traded at around Rs 38 in January 1999, the stock price rose through the year by almost 18 times. It closed the year 1999 at Rs 724. The rise did not stop there. The first few months of the next year saw the stock moving further and touching a high of ar ound Rs 1,375 in March 2000. (The CBI statement on Friday about the scrip never having crossed Rs 2 on the stock exchanges was incorrect.)

In the subsequent months, the stock price hovered in the Rs 900-950 range. The preferential allotment to UTI in July 2000 was at Rs 935 per share. But later in 2000, the stock started its journey downward.

In September 2000, the company did a stock split by reducing the face value of its share to Rs 2 from Rs 10. But even this did not stall the downtrend, which was spectacular. The stock was last traded at Rs 1.15.