MphasiS falls 6% on HP’s writedown of $8.8 billion

NEW DELHI: MphasiS Ltd slipped over 6 per cent in trade on Wednesday as its majority owner Hewlett-Packard Co took a $8.8 billion writedown after allegations of a massive accounting scandal at its British software unit Autonomy.

Hewlett-Packard owns 60.5 per cent owns stake in MphasiS.

At 12:08 pm, MphasiS pared some of its morning losses and was trading 3.2 per cent lower at Rs 386 after hitting a low of Rs 373.90, down 6.52 per cent in opening trade on the National stock Exchange.

Overnight, Hewlett-Packard stock hit a 10-year low after the company took an $8.8 billion charge related to its acquisition of software firm. HP's share price tumbled 11.95 percent to close at $11.71, Reuters reported.

Earlier in the month of September, HPHP gave a particularly gloomy outlook for enterprise services which send the share price of MphasiS lower.

The management is of the view that the company’s recovery would start to become visible only is fiscal 2014, when investments begin to pay off.