Rolta’s bonds tank on short-seller report

Bonds of the Mumbai-based software developer plunge to record low after Glaucus Research issues report urging investors to sell. Rolta swiftly gave a strong rebuttal.

Rolta India’s dollar-denominated bonds dropped to a record low on Thursday after US short-seller Glaucus Research Group accused the company of fabricating its reported capital expenditures in an effort to mask the fact that it materially overstated its Ebitda.

In a report published on April 16 Glaucus initiated coverage of Rolta’s Delaware-issued corporate bonds expiring in 2018 and 2019 with a “strong sell” recommendation.

Rolta’s chief financial officer Hiranya Ashar told FinanceAsia that The report is baseless and that the facts listed are all wrong. It's a motivated move by these guys calling themselves short-sellers and they're doing it to make money.

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