NEW DELHI: Shares of IT services firm Infosys on Tuesday plummeted nearly 17 percent, wiping Rs 53,451 crore from its market valuation. This happened due to concerns over a whistleblower complaint which alleged that two top executives of the company. It said they were indulging in unethical practices to increase short-term revenue and profits.
The scrip tanked 16.21 percent to close at Rs 643.30 on the BSE. During the day, it tumbled 16.86 percent to Rs 638.30, the most since April 2013. On the National Stock Exchange (NSE), it plunged 16.65 percent to close at Rs 640. The sharp fall in the scrip wiped out Rs 53,450.92 crore from the company’s market valuation which now stands at Rs 2,76,300.08 crore.
It was the worst-hit among the frontline companies on both Sensex and Nifty. 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.
According to reports a group that calls itself ‘ethical employees’ has raised a complaint. It alleges that CEO Salil Parekh and CFO Nilanjan Roy were indulging in “unethical practices” to boost short-term revenue and profits.
Infosys on Monday said the whistleblower complaint is placed before the audit committee as per the company’s practice. Later the company will deal with it as per the company’s whistleblower policy.
In a statement on Tuesday, Infosys chairman Nandan Nilekani said that the company’s audit committee will conduct an independent investigation on whistleblower allegations. The committee began consultation with independent internal auditors EY. It has also retained law firm Shardul Amarchand Mangaldas & Co to conduct an independent investigation, Nilekani noted in his statement to the stock exchanges.