IT major’s shares surge up to 6% after it cites absence of supporting proof

Information technology major Infosys on Monday said there was no prima facie evidence in the complaints made by anonymous whistle-blowers against the management. This led Infosys shares to surge up to 6% during Monday’s trade before settling for a 3% gain at the end of the day.

“The anonymous complaints make certain allegations. There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations,” Infosys said in a statement to the NSE.

“With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made,” the statement said, adding that given the circumstances at this stage, where the anonymous complaints were still under investigation, the company was not in a position to determine the concreteness, credibility and materiality of the anonymous complaints.

The audit committee of the company has retained the services of the law firm, Shardul Amarchand Mangaldas & Co. to investigate the matter.

Before the appointment of the independent investigator, the audit committee began consultations with internal auditors Ernst & Young.

Processes reviewed

The internal auditors were given a mandate to review certain processes on the basis of the allegation in the anonymous complaints, the statement said.

“We will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded,” said the company.

Infosys shares rose 3.05% to ₹709 apiece on the BSE.

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