Rolta India pares losses; gains over 1%

Shares of IT firm Rolta India today recovered from its morning lows.

Deutsche Bank has raised its investment recommendation on software firm Rolta India bonds to buy from hold a day after the company denied allegations made by short-seller Glaucus Research about fabricated capital expenditures.

The stock had further declined by nearly 6 per cent after a research report alleged irregularities in its financial, even as the company termed it as “malicious” attempt to pull down its stock price. The stock had plunged 5.65 per cent to Rs 145.20 per scrip on the BSE in early trade. At the NSE, it dipped 5.75 per cent to Rs 145 apiece.

However, the stock pared its losses and was trading up 1.27 per cent or Rs 1.95 higher at Rs 155.80 on the NSE at 12.27 pm. Similarly, on the BSE it was up Rs 2.05 or 1.33 per cent at Rs 155.95.

In the previous session, Rolta India shares had slumped by over 12 per cent.

A 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 a clarification to the BSE yesterday, 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 had said.

COMMENT NOW