Infosys share surges 6% after IT giant says no evidence to whistleblower allegations

Infosys share surges 6% after IT giant says no evidence to whistleblower allegations

In its first official response after the start of a probe into the allegations of 'unethical practices' against Chief Executive Salil Parekh and Chief Financial Officer Nilanjan Roy, Infosys told National Stock Exchange (NSE) there was "no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations"

Today the stock has outperformed IT sector by 3.49%, where the sector has gained 0.43% intraday
BusinessToday.In
  • Nov 04, 2019,
  • Updated Nov 04, 2019, 2:07 PM IST

Infosys shares rose 6% on Monday's trade after the IT giant told the exchanges that it had received no prima facie evidence that corroborates any of the whistleblower allegations made last month.

The shares of Infosys rose 6.5% intraday to Rs 732.50 on the BSE, against the previous closing value of Rs 688.

On the National Stock Exchange, the stock rose 6.48% to touch an intraday high of Rs 732.50. Currently, Infosys stock price trades higher than 5-day moving averages but lower than 20, 50, 100 and 200-day moving averages. The stock price has risen 7.7% year-to-date and nearly 10% in the last week.

Today the stock has outperformed IT sector by 3.49%, where the sector has gained 0.43% intraday. Market-depth data on BSE indicates 52% selling against 48% buying on the current stock price.

In its first official response after the start of a probe into the allegations of 'unethical practices' against Chief Executive Salil Parekh and Chief Financial Officer Nilanjan Roy, Infosys told National Stock Exchange (NSE) there was "no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations".

"Given the circumstances at this stage, where there is a complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints," it added.

The letter claimed to have been written by Infosys employees in October accused CEO Salil Parekh of indulging in several "unethical practices".

Infosys Q2 results: Net profit falls 2.2% to Rs 4,019 crore; board approves interim dividend

'E-mails, voice recordings': Whistleblower letter trains guns on Infosys CEO Salil Parekh, CFO Nilanjan Roy

Infosys says no prima facie evidence to support whistleblower allegations

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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