Mumbai - The fall wiped out Rs470 billion in market capitalisation, which was at Rs2.8 trillion.
Published: Tue 22 Oct 2019, 11:17 PM
Updated: Wed 23 Oct 2019, 1:20 AM
IT major Infosys saw its worst day on the bourses in over six years on Tuesday as investors pulled out their funds over recent corporate governance issues.
Its scrips settled nearly 17 per cent lower despite assurances from the company top brass. The fall wiped out Rs470 billion in market capitalisation, which was at Rs2.8 trillion as at 0650 GMT.
The impact of the sharp sell-off was seen far and wide. Life Insurance Corporation, which holds a 5.85 per cent stake in the company with a total 250.13 million stocks, saw its share prices falling over 3 per cent on the BSE.
The index of 10 IT companies, Nifty IT, slipped over 741.40 points, or 4.81 per cent, with Wipro and NIIT Technologies being the only companies to end in the green.
Some anonymous Infosys employees have written to the company board accusing its Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy of being involved in unethical practices for several quarters.
In a 2-page letter to the IT behemoth's board of directors on September 20, the complainants said that in a quarter under review of fiscal 2019-20, the management put immense pressure on them to not recognise reversals of $50 million (Rs 3.53 billion) of upfront payment in FDR contract, as it will slash the company's profits for the quarter and negatively affect its stock price.
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