New Delhi: Infosys shares plummeted by Rs 53,451 crore, accounting for nearly 17 per cent on Tuesday marking their worst single-day fall in over six years. The nosedive came as a result of a complaint from anonymous whistleblowers who accused CEO Salil Parekh and CFO Nilanjan Roy of pulling strings to show profits.
Infosys sunk by 16.21 per cent on the BSE to close at Rs 643.30, while it tanked 16.65 per cent on NSE to close at Rs 640.
Earlier today, the second-largest IT company in India faced huge controversy for conducting hyper-aggressive accounting practices in order to hide any losses on large deals from their investors. As a result, the stock market has already witnessed a panic situation among Infosys shareholders.
As the IT giant’s audit committee looks into the whistleblower letter, experts of crisis communication have recommended them to act urgently upon damage control.
A group of employees had alleged that the two top executives of Infosys have indulged in ‘unethical practices’ and are hiding critical information to casually call other board members as ‘Madrasis’, or ‘Diva’.
“The CEO told us, no one in the board understands these things, they are happy as long as the share price is up. Those two Madrasis and Diva make silly points, you just nod and ignore them,” read the statement of the group of whistleblowers, who identified themselves as ‘ethical employees’.
The whistleblowers’ group has also claimed that they have voice recording and other evidence of whatever they claimed in the letter. However, Infosys chairman Nandan Nilekani refused to comment on the evidence, stating that it will affect the ongoing investigation from being conducted in a thorough and objective manner.