Infosys rose 0.46% to Rs 877.50 at 12:10 IST on BSE, on bargain hunting after the stock slumped 14.45% in last two sessions.
The stock had dropped 14.45% to Rs 873.50 in two sessions to settle at Rs 873.50 yesterday, 21 August 2017, from a close of Rs 1,021.15 on 17 August 2017.
Meanwhile, the S&P BSE Sensex was up 90.19 points, or 0.3% to 31,352.50.
High volumes were witnessed on the counter. On the BSE, 10.58 lakh shares were traded in the counter so far, compared with average daily volumes of 4.52 lakh shares in the past one quarter. The stock had hit a high of Rs 897 in intraday trade. The stock had hit a low of Rs 861.50 so far during the day, which is also a 52-week low for the stock. The stock had hit a 52-week high of Rs 1,080.70 on 14 October 2016.
The stock had underperformed the market over the past one month till 21 August 2017, falling 10.86% compared with 2.4% decline in the Sensex. The scrip had also underperformed the market in past one quarter, declining 8.81% as against Sensex's 2.61% rise. The scrip had also underperformed the market in past one year, dropping 14.45% as against Sensex's 11.33% rise.
The large-cap company has equity capital of Rs 1148.48 crore. Face value per share is Rs 5.
The stock had dropped 5.37% to Rs 873.50 yesterday, 21 August 2017 after report suggested that four US law firms would be investigating claims on behalf of Infosys investors whether some of the officers and directors of the company engaged in securities fraud.
Meanwhile, Infosys' board at its meeting held on Saturday, 19 August 2017, approved a proposal to buyback upto 11.3 crore shares, aggregating up to 4.92% of the paid-up equity capital, at Rs 1,150 per share. The maximum buyback size is Rs 13000 crore.
The stock had slumped 9.6% to Rs 923.10 on Friday, 18 August 2017 after the company announced that Vishal Sikka resigned as managing director and chief executive officer of Infosys on Friday, 18 August 2017. The board accepted his resignation with immediate effect, the IT major said in a statement issued during trading hours on Friday, 18 August 2017. Infosys said U.B. Pravin Rao, its chief operating officer, was named as interim managing director and chief executive.
Dr Sikka cited personal attacks as one of the reasons for his surprise resignation in a letter to Infosys board members. In his notice of resignation to the board, Dr Sikka reiterated his belief in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the company's transformation, Infosys said in a statement.
The board understood and acknowledged Dr Sikka's reasons for resignation, and regrets his decision. In particular, the board was profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters and have surfaced in recent months, Infosys added.
On 18 August 2017, shortly after announcing CEO's resignation, the company had said that founder member, Narayana Murthy's continuous assault, including latest letter, was the primary reason that the CEO, Vishal Sikka, had resigned despite strong board support.
Infosys had said that it had come to the attention of the board that a letter authored by Narayana Murthy, the founder of Infosys had been released to various media houses attacking the integrity of the board and management of the company alleging falling corporate governance standards in the company. The board took great umbrage to the contents of the letter and placed on record that Murthy's continuous assault, including this latest letter, was the primary reason that the CEO, Dr Vishal Sikka, had resigned despite strong board support.
Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017.
Infosys is a global leader in technology services and consulting.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
