Whistleblower Complaint Causes Infosys Shares To Nosedive Nearly 17 Per cent, Worse Since April 2013

Agency
Tuesday, 22 October 2019

Infosys shares plummeted by nearly 17 per cent, wiping off Rs 53,451 crore from its market valuation on Tuesday. The IT services firm's market valuation which now stands at Rs 2,76,300.08 crore.

New Delhi: Infosys shares plummeted by nearly 17 per cent, wiping off Rs 53,451 crore from its market valuation on Tuesday. The IT services firm's market valuation which now stands at Rs 2,76,300.08 crore. In a statement on Tuesday, Infosys Chairman Nandan Nilekani said the company's audit committee will conduct an independent investigation on whistleblower allegations. Infosys was the worst-hit among the many big companies on both Sensex and Nifty. This comes in the wak of concerns over a whistleblower's complaint alleging unethical practices by two top executives of the company to increase short-term profits. 

The scrip nosedived 16.21 per cent to close at Rs 643.30 on the Bombay Stock Exchange (BSE), tumbling to 16.86 per cent dureing the to Rs 638.30 -- the most since April 2013. On the National Stock Exchange (NSE), it plunged 16.65 per cent to close at Rs 640. In terms of traded volume, 117.70 lakh shares of the company were traded on the BSE and over 9 crore shares on the NSE. 

PTI reported that complaint by a group that calls itself 'Ethical Employees' has alleged Infosys' CEO Salil Parekh and CFO Nilanjan Roy were indulging in "unethical practices" to boost short-term revenue and profits. The complaint has been placed before the audit committee as per the company's practice, and that it will be dealt with in accordance with the company's whistleblower policy, said a statement from Infosys on Monday. The committee began consultation with independent internal auditors EY, and has retained law firm Shardul Amarchand Mangaldas & Co. to conduct an independent investigation, Nilekani said in his statement to the stock exchanges.

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