The Satyam fiasco has had an unintended fallout for even other respected IT firms in the country. After doubts about Wipro that hammered its shares (See: Wipro among 111 global firms debarred by World Bank), now GIS speacilist Rolta seems to have hit a rough patch.
The market has been flooded with speculation, rumours and questions about the veracity of the financial well-being of other IT companies.
Rolta India is one of India's leading IT companies, specialising in geospatial information systems (GIS), engineering design services (EDS) and enterprise information and communications technology (EICT).
The shares of the company sank nearly 60 per cent in intra-day trading as rumours swirled that lenders were dumping pledged shares, an eerie reminder of Satyam's first brush with trouble.
Rolta shares hit an intra-day low of Rs42.40, down steeply from the opening trade of Rs107.90. There were reports that Goldman Sachs, which holds 3.5 per cent of the stock, had been selling the shares, while Merrill Lynch sold around 10 lakh Rolta shares at Rs68.41 on the NSE.
It is learnt that around 2.5 per cent of the company's equity has been pledged with various nationalised and private sector banks.
The company was forced to clarify that all its operations and business were in order and that there were no new developments that could have had any material impact on the company's operations and business.
Rolta said it has been communicating all material developments to the financial community through its releases and information sent to exchanges - the last such event was the acquisition of Piocon Technologies in the last week of December 2008. The shares stabilised after this statement from the company.
Another mid-cap software company, the Hyderabad-based Tanla Solutions has been the victim of rumours ad its share price has been seeing a sharp fall. To counter these speculations, Tanla Solutions Ltd, has informed BSE that:
"None of the Promoter's / Promoter Group's shareholding in the Company has been pledged with any financial institution, bank or any other entity as security for any financing lines.
"The Promoter Directors, and their respective spouses, have no other material business interests other than the shareholding in Tanla Solutions Ltd."