Infibeam claims its fundamentals are intact

A day after shares of Ahmedabad-based Infibeam were battered on the stock market, the company assured shareholders that it was looking into Friday's massive fall at the company's annual general meeting (AGM).

On Friday, investors lost about Rs 9,200 crore in market capitalisation as its shares dropped over 70% in a single session following rumours that spread on instant messaging platforms. The company management has clarified in a note on Saturday that the fundamentals of the company remain intact and that there is no information which is pending from the company's side.

One of the reasons for the fall was a WhatsApp message that raised concerns about the company's accounting practices. There were also rumours in the market that its chief financial officer had stepped down.

"We would like to bring to your notice that the news on Hiren Padhya, CFO, Infibeam, leaving the company is completely incorrect," the company told DNA Money in a statement.

Infibeam, which went public in March 2016, provides software development services, maintenance, web development, e-commerce and other ancillary services.

At the AGM, Vishal Mehta, managing director, made the statement at the beginning of his presentation. Interestingly, shareholders refrained from raising questions over how the listed company lost 70% of its market value in a single day following rumours.

In his speech, Mehta assured shareholders that the company was looking into the matter.