The Infosys stock fell on Tuesday after the firm said Royal Bank of Scotland has cancelled its plan to separate and list a new standalone bank, Williams and Glyn (W&G), and instead will pursue other options for the divestment of this business.
The bank had awarded a five-year 300 million Euro IT contract to Infosys and IBM for W&G.
At 11:07 am, the stock was trading 1.25 per cent lower at Rs 1050 on the BSE. It opened at 1,042 level and hit a low of 1,027 level, later recovering some ground.
The move is likely to hit 3,000 Infosys employees and impact revenues for the year by about $40 million to $50 million, media reports said. In 2013, Infosys won the contract to develop applications for W&G, a bank planned to be set up in the UK.
Infosys employees going for lunch during announcement of the first quarter results of the company at its headquarters in Bengaluru. Photo: PTI