Infibeam complains against WhatsApp message for causing loss of Rs 9,200 Cr in market cap

Infibeam

India first e-commerce listed firm on the stock exchange has complained to the government and SEBI about a Whatsapp message, that it claimed to have caused loss of Rs 9200 crore in company’s market capitalisation.

Infibeam Avenues in a letter to the govt has asked to take action and clamp down on Whatsapp rumour that has led to a massive fall of its stock prices.

“The nuisance of rumours via WhatsApp, which is now not just limited to social disturbance but has also started creating an economic disturbance. My company’s example aptly fit here,” ET quoted Vishal Mehta’s letter.

It urged the IT ministry ask Facebook-owned firm to bring in technology to make the WhatsApp messages traceable to the origin. It also warned against such practice which has high potential to tarnish Indian economic growth story and spread economic and financial panic.

“This kind of viral WhatsApp rumour if keeps on repeating with other Indian corporates, will certainly shake the trust of small retail investors and other investors in the Indian corporate growth story,” the letter further added.

Earlier on Friday, a Whatsapp message that raised questions on Infibeam’s accounting policies and corporate governance. It also rumoured about stepping down of the company’s CFO.

The rumour led to steepest single day fall, a 71 per cent in price to Rs 57.90, for a firm after Satyam Computer crash in 2009.

The same day, Infibeam rebuffed the rumours saying the company’s fundamentals are intact and no one is leaving the firm.

Founded in 2007, Infibeam went public in March 2016. It provides software development services, maintenance, web development, e-commerce, and other ancillary services.

In FY18, the company had recorded 90 per cent growth in revenue over the preceding fiscal with a whopping 102 per cent rise in net profit. The company had posted a revenue of Rs 839.3 crore in last fiscal along with a net profit of Rs 88.1 crore.

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