8K Miles looks to tackle falling stock prices through valuation study

Having faced a range of allegations and legal proceedings in recent times, cloud and data management consultancy 8K Miles has made the decision to undergo a valuation study. The move is aimed at restoring investor confidence in the firm and intiating a recovery in the overall stock prices. 

8K Miles is primarily a software consulting firm that operates in a wide range of relevant industry 4.0 domains, including cloud services and Big Data capabilities. The Chennai-based firm has offices across the US and Canada and has grown tremendously in profile since its establishment in 2007.

The firm also holds the title of Premium Partner for Amazon Web Services Consulting, which has contributed to its growth of status and acclaim. Nevertheless, the firm has been embroiled in scandal in recent times, stretching across nearly every aspect of its operations across the globe.

The allegations against the firm include a number of fraudulent transactions carried out in a company owned by the firm’s Chief Financial Officer (CFO). The transactions were carried out based on false signatures, and the misappropriation allegations leveled have since brought about the resignation of the CFO.

The firm has also been battling a regulatory complaint lodged by a promoter, although perhaps its biggest challenge in recent times has been its battle with a staggering 90% drop in its stock prices over a period of less than 10 months, allegedly brought about by a “broker cartel.” 

To rescue this deteriorating situation, 8K Miles has since made the decision to undertake a valuation study. As explained by the CEO of 8K Miles Suresh Venkatachari, “Our stock is totally undervalued. We are speaking to bankers to get an enterprise valuation done,” referring to the firm’s current market capitalisation of less than Rs. 290 crore.

Commenting on navigating its current challenges, Venkatachari said, “Inititally, when we discovered (the irregularities), we needed to investigate the matter privately to better understand the situation and establish with evidence that the selling was indeed illegal and fraudulent.”

“Immediately after our finding, we filed with the Security and Exchange Board of India and the police to hand over the case to authorities to investigate further. I am prepared for a complete forensic audit by independent agencies,” added Venkatachari.