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

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

Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. (Photo by Reuters)

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.

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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.

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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.

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