Educomp was recently in news over allegations that its profits were inflated and promoters had made big profits by trading their own shares and diverting funds to unlisted subsidiaries (published in The Pioneer magazine).
The result was 22% plunge in the company stock (satyam effect?) and the company instead of going PR route, has launched an online advertising campaign (using Google Adwords).
Interestingly, Educomp’s stock has now gone up by ~16%! (owing to whole lot of claims made by founders..but I am sure online ad campaign must have played an important role here).
The interesting part here is using advertising route to come clean – instead of doing it via the traditional means etc.
Interesting! Isn’t it?
What’s your opinion?