Infosys shareholders lose Rs 53k cr as stock dips 16.2%

Last Updated 22 October 2019, 11:28 IST

The shareholders of IT major Infosys lost close to Rs 53,000 crore in a single day of trade and company’s shares tanked by 16.2% -- its biggest loss in past six years – over grave allegations of financial impropriety, racism and misogyny by an anonymous whistleblower group.

The share of Infosys opened 10% lower on the Bombay Stock Exchange at Rs 691. The company’s shares closed at Rs 643.30 a piece, down by Rs 24.45 (-16.21%). On Friday, the company’s scrips had closed at Rs 767.75 apiece.

READ: Infosys hires law firm to investigate charges on CEO

Infosys, as of date, has 425 crore shares outstanding, which would result in a loss Rs 52,995.9 crore for the shareholders.

The company’s co-founder and chairman Nandan Nilekani and his family, who own 10.04 crore shares in Infosys, lost Rs 1,250.2 crore in the day alone.

READ: Infy Dy CFO's exit conveys something is 'rotten': R-Sec

The bloodbath in the company’s shares led to a crash in BSE’s Information Technology Index as well. The BSE-IT crashed by 7.01% (1,083.29 points) to 14,370.31 points.

The American Depository Receipts (ADR) of Infosys also opened 15.4% lower in the New York Stock Exchange (NYSE) at $8.94 apiece, on Monday. The ADRs closed the day’s trading 12.11% lower at $9.29 apiece. In the pre-open trade, the company’s ADR dipped by almost 18%.

An ADR is a negotiable certificate issued by a US depository bank representing a specified number of shares—or as little as one share—investment in a foreign company's stock. The ADR trades on markets in the US as any stock would trade.

ALSO READ: Infosys CEO Parekh faces financial fudging allegations

In the case of Infosys, one equity share held in India is equivalent to one ADR held on NYSE.

(Published 22 October 2019, 10:57 IST)

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