Investors Lose Rs 44,000 cr Over Infosys Whistleblowing, Shares Crash By 16%; Nandan Nilekani Issues Statement
IInfosys top management has been accused of ‘unethical business practices’ by whistleblowers and this is proving to be costly for the company.
Share prices have plunged by 16% in the morning trade, as uncertainty persists.
Meanwhile Infosys Chairman Nandan Nilekani has been forced to issue a statement.
Here are the updates…
Infosys Share Prices Crash Over Whistleblowing
Share prices of Infosys crashed by 16% in the morning trade today, October 22nd, as the allegations of whistleblowers are being investigated.
A sort of panic has gripped the stock investors, as the stock opened 10% lower on both NSE and BSE, and at one point, was 16% lower than yesterday.
The shares got stuck in the lower circuit of 10%, as the price fell by 76 points: Compared to the closing price of Rs 767.75 yesterday, the share prices dropped to Rs 691.
Stock investors lost Rs 44,383 crore of market wealth, collectively due to this crash of stock prices.
Once the lower circuit limit was raised to 20% on growing pressure, the stock prices plunged to 16%, as both BSE and NSE only saw sellers of Infosys stock, and no buyers.
Infosys experienced the biggest lost in the share prices, today.
Nandan Nilekani Issues Statement
Infosys Chairman Nandan Nilekani has issued a statement related with this case of whistleblowing.
He has admitted that they have received the letters from whistleblowers, and investigation is on.
In the letter shared by whistleblowers, it has been alleged that Infosys top management violated laws by sharing wrong numbers to showcase growth.
Issue of racism was also mentioned in the letter.
In his letter, Nandan Nilekani has assured that investigation is on, and both CEO and CFO have been recused from this investigation for fairness and transparency.
The letter from Nandan Nilekani stated: “These Complaints are being dealt with in an objective manner. The undated whistleblower complaint largely deals with allegations relating to the CEO’s international travel to the US and Mumbai.”
While Shardul Amarchand Mangaldas & Co. are investigating the allegations, their independent internal auditors: Ernst &Young are auditing the finances to find the truth of the matter.
You can find the full text of the statement here.
We will keep you updated, as more details come in.