What's wrong with Rolta?

The mid-sized IT firm will find it tough to resurrect investor confidence as its financials are questioned

Mathew Wiechert is no George Soros or Bill Ackman but the self-proclaimed short-seller — who runs a boutique hedge fund in California — has stirred a hornet’s nest on Dalal Street by allegedly calling Rolta’s bluff. The mid-cap IT company, which specialises in geospatial information systems, engineering and design services to enterprises and defence forces, tanked 37% in eight sessions to ₹110 (April 27) after Glaucus Research Group — named after the Greek god of the sea blessed with the power of prophecy — came out with a 32-page report indicating that the ₹2,733-crore (9MFY15 revenue) Mumbai-based company had perhaps cooked its capital expenditures over the years in order to hide its Ebitda overreach.