Infosys shares fall 17%: Six-year-old biggest bang

On the NSE, the share price is 16.65% ie Rs. 127.85 down to Rs. Closed at 640 level

New Delhi, Oct 22, 2019, Tuesday

Infosys shares fell 16.65% the next day on the allegation that anonymous employees (whistleblowers) were misappropriating the company's financial papers to show the company's top two executives' earnings and profits. This has reduced its market cap by Rs 53,451 crore.

On the BSE, the stock fell 16.21 percent to close at Rs 643.30. At intraday, the stock fell 16.86 per cent to Rs 638.30. Which is the biggest bang since April 2013. On the NSE, the stock fell 16.65 percent to close at Rs 640.

The company's market cap has dropped to Rs 2,76,300.08 crore from Rs 53,450.92 crore due to sharp fall in share prices. In terms of trade volume, 117.70 lakh shares of Infosys were traded on BSE today when 9 crore shares were traded on the NSE.

It is worth mentioning that yesterday, some unknown employees of the company, who called themselves Ethical Employees, alleged that the CEO of the company Salil Parikh and CFO Nilanjan Roy were misbehaving to show short term revenue and profit margins.

Today, Infosys chairman Nandan Nilekani said the audit committee would conduct an independent inquiry following a whistleblower complaint. Nilekani further said that a law firm has been appointed for the investigation.

In a letter to the Infosys Board and the US Security Exchange Commission (SEC), the whistleblower targeted CEO Salil Parekh, saying that he was pressuring the finance team to misrepresent statistics.

He said that we are an Infosys employee and in this case we have e-mail and voice recording. We hope the board will investigate and take action immediately.