Infosys Condemns "Mischievous Insinuations" Made Against Co-Founders

Statement comes after Infosys said on Monday that it received no evidence to support the allegations in a whistleblower letter from last month.

Infosys Condemns 'Mischievous Insinuations' Made Against Co-Founders

Infosys shares traded 1.5 per cent higher at Rs 706.50.

Highlights

  • I have deep regard for all our cofounders, said Nandan Nilekani
  • Infosys has appointed an external law firm to conduct an investigation
  • Infosys shares traded 1.5 per cent higher

Infosys said on Wednesday it "strongly condemns the mischievous insinuations" made by anonymous sources against the co-founders and former colleagues. The statement from the country's second largest IT services exporter comes amid whistleblower complaints alleging certain "unethical practices" and accused CEO Salil Parekh of leading an effort to shore up profits through irregular accounting. Shares in Infosys jumped nearly 4 per cent after the release of the statement.

"These speculations are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals," said Nandan Nilekani, chairman, Infosys, in the statement.

"I have deep regard for the life-long contribution of all our cofounders. They have built this institution and have served this company selflessly and even today, remain committed to the long-term success of Infosys," Mr Nilekani added.

Infosys had said in a separate statement the previous day that it received no evidence to support the allegations in a whistleblower letter from last month.

The letter - claimed to have been written by some employees of the company in October - said the chief executive instigated them and others to bypass approvals for large deals, fearing a negative impact on shares from reduced profit.

Infosys reiterated that an external law firm appointed by its audit committee is conducting an independent investigation in the matter. Infosys further said it would share the outcome of the probe at the relevant time with all stakeholders.

On the BSE, Infosys shares spiked as much as 3.65 per cent to Rs 721.50 apiece after the news. At 12:31 pm, the Infosys stock traded 2.28 per cent higher at Rs 711.95 on the bourse, outperforming the benchmark Senesx index which was up 0.50 per cent.

Infosys shares nosedived nearly 17 per cent on October 22 in their worst single-day drop in more than six years, wiping out nearly Rs. 53,000 crore of investors' wealth after the allegations of unethical practices surfaced against the top management of the company.