The head of India's Satyam Computer Services resigned on Wednesday after saying that the outsourcer’s profits had been inflated, sending the stock down more than 80 percent and roiling investor confidence, according to a report by Reuters.

Ramalinga Raju, founder and chairman of Satyam, said in a statement the company's profits had been inflated over recent years but no other board member had been aware of the financial irregularities.

"The gap in the balance sheet has arisen purely on account of inflated profits over a period of the last several years," Raju said.