Infosys fell 4.84% to Rs 878.40 at 14:07 IST on BSE on reports US law firms are investigating whether the IT major violated federal securities laws.
Meanwhile, the S&P BSE Sensex was down 159.47 points, or 0.51% to 31,365.21.On the BSE, 35.82 lakh shares were traded in the counter so far, compared with average daily volumes of 3.84 lakh shares in the past one quarter. The stock had hit a high of Rs 929 and a low of Rs 875.20 so far during the day. The stock hit a 52-week high of Rs 1,080.70 on 14 October 2016. The stock hit a 52-week low of Rs 875.20 on 21 August 2017.
The stock had underperformed the market over the past one month till 10 August 2017, falling 4.74% compared with 1.19% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 3.63% as against Sensex's 3.48% rise. The scrip had also underperformed the market in past one year, falling 9.60% as against Sensex's 12.28% rise.
The large-cap company has equity capital of Rs 1148.48 crore. Face value per share is Rs 5.
According to media reports, 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. This development follows the sudden resignation of CEO Vishal Sikka and the steep drop in share prices on Friday, 18 August 2017.
Vishal Sikka resigned as managing director and chief executive officer of Infosys on Friday, 18 August 2017. The board has 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, has been named as interim managing director and chief executive.
Shares of Infosys slumped 9.60% to settle at Rs 923.10 on Friday, 18 August 2017. The stock has fallen 13.98% in two sessions from its close of Rs 1,021.15 on 17 August 2017.
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 understands and acknowledges Dr Sikka's reasons for resignation, and regrets his decision. In particular, the board is 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.
Meanwhile, Infosys' board at its meeting held on Saturday, 19 August 2017, approved a proposal to buyback upto 11.30 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 buyback price is at a premium of 24.58% over the stock's closing price of Rs 923.10 on the BSE on Friday, 18 August 2017.
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.
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