New Delhi: 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 firm 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, 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 firm’s market valuation which now stands at Rs 2,76,300.08 crore.

The allegation

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.
The letter addressed to the board claimed that recent big deal wins carried negligible margins and that Roy directed certain people to make wrong assumptions to show margins. The whistleblowers said they have emails and voice recordings on these matters. Infosys said the whistleblower complaint has been placed before the Audit Committee as per the company’s practice.