Educomp plunges 9% on account fudging reports

Educomp Solutions today plunged nearly 9% amid reports the firm might have manipulated its books to boost share prices.

Shares of Educomp plunged 8.61% to a low of Rs 1,915.20 on the Bombay Stock Exchange during the day and ended the day at Rs 1,969, down 6.5% over the previous close.

Within days of Rs 7,800 crore fraud admittance by founder Chairman of IT firm Satyam, media reports have surfaced about manipulation in Educomp's accounts, which point at the rapid growth in its turnover and hefty profits made by the promoters in trading in its own shares.

Analysts believe the stock has taken a beating after reports surfaced that the company may have overstated its turnover and profits to boost its shares and the promoters exited when the scrip reached its peak.

The scrip, which gained nearly 9% in the past two trading sessions, has offset most the gains today.