Infosys shares plunge nearly 17%; m-cap drops by Rs 53,451 crore on whistleblower complaint
New Delhi, Oct 22: Shares of IT services firm Infosys on Tuesday plummeted nearly 17 per cent, wiping Rs 53,451 crore from its market valuation, on concerns over a whistleblower complaint which alleged that two top executives of the company were indulging in unethical practices to increase short-term revenue and profits.
The scrip tanked 16.21 per cent to close at Rs 643.30 on the BSE. During the day, it tumbled 16.86 per cent 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.
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 complaint by a group that calls itself 'Ethical Employees' has alleged 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 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.
In a statement on Tuesday, Infosys Chairman Nandan Nilekani said the company's audit committee will conduct an independent investigation on whistleblower allegations.
The committee began consultation with independent internal auditors EY, and has retained law firm Shardul Amarchand Mangaldas & Co. to conduct an independent investigation, Nilekani noted in his statement to the stock exchanges.
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Congress Corporator's daughter stabbed to death inside college campus in Hubballi
Hubballi (Karnataka), Apr 18: The daughter of a Congress Corporator was stabbed to death by her acquaintance inside BVB college campus here on Thursday after she allegedly rejected his proposal, police said.
The deceased Neha (23), the daughter of Niranjan Hiremath, was a first-year MCA student, they said.
The accused 23-year-old Fayaz, an MCA dropout, has been arrested in connection with the incident, police said, adding that both of them were batchmates during their BCA course.
The entire incident was caught on CCTV camera.
According to the police, Fayaz went inside the college campus with a knife and stabbed Neha five-six times. During the attack, he too sustained injuries and was shifted to the hospital along with the victim. At the hospital, Neha was declared brought dead.
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"During interrogation, he (Fayaz) claimed that the two of them had been in a relationship and that she had suddenly started avoiding him. It needs to be corroborated and verified, but he was arrested immediately," a senior police officer said.
A case of murder has been registered, police said, adding that further investigation is underway.
Narrating about the incident, Neha's father Hiremath said that his daughter had classes from 8 am. At around 4.30 pm, when she stepped out after completing her classes, this person approached towards her and stabbed her nearly six times inside the college campus and she died on the spot.
"He (the accused) was an old student and he had proposed my daughter but she rejected his proposal. She did not like him and she usually stayed away from all this...She refused him saying they both belonged to different caste and that she did not wish to have any relationship with him. Out of anger, he stabbed my daughter," he told PTI videos.
Demanding justice for her daughter, he said that the accused should he hanged to death only then will his daughter's soul rest in peace.
Meanwhile, Karnataka Chief Minister Siddaramaiah condemned the incident and offered condolences to the family of the deceased.
"An accused has already been arrested in connection with the incident and I have instructed the Director General of Police to conduct a strict investigation and take action to ensure maximum punishment for the accused," he said in a post on 'X'.
He also appealed to people to not take law into their hands.
"In connection with the incident, no one should get agitated and take law into their hands or attempt to disturb peace of the society. It is our duty to get justice for the death of the young woman, in this regard the police department will work hard," he added.
