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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Hassan: Two young men die in two-wheeler head-on collision in Channarayapatna
Hassan: Two young men reportedly died in a head-on collision between a scooter and a bike near the Doderi guard gate in Channarayapatna taluk of the district on Tuesday.
The deceased have been identified as Ramesh (23) of Mattighatta village and Purushottam (26) of M. Honnenahalli village.
Ramesh and Kiran were riding a scooter when the bike driven by Purushottam, coming from the opposite direction, collided with them.
Ramesh is learnt to have succumbed to his injuries at the spot.
While the biker, Purushottam, was also seriously injured and died after failing to respond to treatment.
Kiran, who was on the scooter, sustained serious injuries and is undergoing treatment at Hassan District Hospital.
Hirisave police visited the site, registered a case, and are conducting further investigation.
