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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Instagram removes BJP’s post claiming Cong ‘will snatch wealth of non-muslims’ following backlash
New Delhi: An animated video post shared on BJP’s official Instagram handle, asserting that the Congress party would snatch wealth from non-Muslims to ‘distribute it to its favorite community of invaders,’ has sparked significant backlash. Following the uproar, the photo sharing platform has taken down the post, reports Newslaundry.com.
Meanwhile, it is uncertain whether the post was removed by the BJP or by Instagram following mass reporting by several users as “misinformation” and “hate speech”. The video depicted Rahul Gandhi holding the Congress manifesto which transforms into the logo of the Muslim league. Furthermore, it sought support for PM Modi from every ‘Bharatiya,’ who is also shown wearing a saffron turban.
According to the report, it also contained a clip of PM Modi alleging that the former PM Manmohan Singh had said, “Muslims have the first claim on our resources,” insinuating that if the Congress were to assume power, it would confiscate the money and assets of non-Muslims, redistributing them to Muslims, whom it favored. Labeling Muslims as ‘infiltrators’, the video depicted historical invaders as looters who plundered India's resources and suggested that the Congress party continues to empower individuals from the same community.
The video then communicated that the Congress party’s manifesto is “nothing but Muslim league’s ideology in disguise. If you are a non-Muslim, Congress will snatch your wealth and distribute it to Muslims.” It also slinged the BJP’s official slogan ‘abki baar, 400 paar,’ and called that it was the need of the hour, since Modi only has the “strength to stop the Congress party’s evil plans.”
Similar claims have also been made by several BJP leaders. Recently, Union Minister Anurag Thakur stated that the Congress intends to “Give your children's property to Muslims.”
