Rolta India tanks 14 pc; company rubbishes research note

Shares of IT firm Rolta India fell sharply by over 14 per cent today after a research report alleged irregularities in its financials, but the company termed it as "malicious" attempt to pull down the stock price.
The company also said it is exploring legal action to protect its interests.
The little-known US-based research firm Glaucus Research reportedly had said that Rolta India fabricated its reported capital expenditures, did not produce free cash flow and could not repay offshore bondholders without refinancing.
This led to the stock plunging by 14.53 per cent to Rs 149.70 at the BSE.
On the NSE, the scrip tumbled 14.36 per cent to Rs 149.60.

Later in a clarification to the BSE, Rolta India said, "This undated Glaucus Research Report is completely baseless and has factual errors and inconsistencies.
"The Glaucus Research Group has never contacted Rolta to verify any facts. This report is malafide, malicious and aimed at misleading investors with an ulterior motive - so that Glaucus Research Group can benefit from its short interest in Rolta's bonds."
The company is exploring all avenues including legal remedies to protect its interests, the filing said.