Infosys touches 8-month low as RBS scraps Williams & Glyn project

The stock was down 3% at Rs 1,028, its lowest level since December 9, 2015 on the BSE in early morning trade.

Shares of Infosys have fallen to its lowest level since December 9, 2015, to Rs 1,028, down 3% on the BSE in early morning trade after a key client Royal Bank of Scotland (RBS) scrapped a project to set up a separate bank in the United Kingdom, for which IT major was a key technology partner. LINK

The stock is currently trading nears to its 52-week low of Rs 1,012, touched on November 11, 2015 during intra-day trade.

“The Royal Bank of Scotland announced last week that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business,” Infosys said in a media statement on Saturday, August 13, 2016.

Infosys has been a W&G program technology partner for consulting, application delivery and testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months, it added.

RBS is a key relationship for Infosys and the company looks forward to further strengthening its strategic partnership and working with them across other strategic and transformation programs, Infosys said.

Since June 23, 2016, post Brexit, Infosys stock has underperformed the market by falling 15% from Rs 1,212, against 4% rise in the S&P BSE Sensex.

At 09:27 am, the stock was down 2% at Rs 1,039, as compared to a marginal 0.01% decline in the benchmark index. A combined 2.28 million equity shares changed hands on the counter in first 15 minutes of trade on the BSE and NSE.