Shares of IT firm Rolta India tanked over 12 per cent today after a research report alleged irregularities in its financial, but the company termed it as "malicious" attempt to pull down the stock price.
A little-known US-based research firm Glaucus Research reportedly had said that Rolta India fabricated its reported capital expenditures in order to mask that it has materially overstated its EBITDA (Earnings before income tax, depreciation and amortisation).
Rolta India said it is exploring legal action against the research firm to protect its interests.
In reaction to that, shares of Rolta plunged 12.13 per cent to settle at Rs 153.90 on the BSE. During the day, it nosedived 14.53 per cent to Rs 149.70.
On the NSE also, the scrip tanked 11.93 per cent to close at Rs 153.85.
Led by the sharp decline in the stock, the company's market value fell by Rs 342.15 crore to Rs 2,482.85 crore.
On the volume front, 39.39 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
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.
Meanwhile, in the stock market the benchmark Sensex ended at 28,666.04, down 133.65 points.
