Following an explanation on a spike in ADRs, Infosys' share price surged more than 3% on December 22, rising 56% to $30 before ending at $20.22. According to the company, there were no significant occurrences that required disclosure in accordance with SEBI standards.
On Monday, December 22, the price of Infosys shares increased by more than 3% in intraday trading after the IT giant clarified that Infosys ADRs had increased by as much as 56% to reach a high of $30 on the NYSE during Friday's session, most likely due to a short-squeeze trigger.
Later, Infosys ADRs lost ground, closing at $20.22, up 5.42%.
On December 19, Infosys reported that it saw fluctuations in the price of its American Depository Receipts (ADRs) listed on the New York Stock Exchange (NYSE), which caused the exchange to initiate two volatility trading pauses.
However, Infosys emphasized that there were no significant events that were to be disclosed in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
"The purpose of this statement is to prevent any unjustified conjecture and to promote transparency. The company would continue to fulfill its responsibilities under Regulation 30 of the SEBI Regulations in accordance with its practices, it stated.
Updates on Infosys Law
Infosys also gave updates on some class action lawsuits that had previously been revealed in its financial statements in a different exchange filing that was released on Saturday. According to the firm, the court finally approved the settlement of class action lawsuits against Infosys McCamish Systems LLC, a subsidiary, and certain of McCamish's clients on December 18.
Infosys stated that it had initially revealed in November 2023 that the plaintiffs in the ongoing lawsuits against Infosys McCamish Systems LLC and specific clients had achieved an agreement in principle. The business added that McCamish and the plaintiffs signed a new agreement in principle on March 13, 2025.
In order to settle the issues, McCamish consented to contribute USD 17.5 million to a settlement fund. On December 18, 2025, the court gave the settlement final approval. Infosys further stated that the settlement will take effect and settle all claims in the class action lawsuits without acknowledging any liability if it is not appealed within 30 days.
Short squeeze: what is it?
A short squeeze happens when a stock with a lot of short positions unexpectedly climbs rather than falls, taking investors by surprise. When the stock rises, short sellers—those who borrow and sell shares with the expectation that prices will drop—start to lose money. Brokers may issue margin calls as prices climb, compelling these investors to promptly repurchase shares in order to limit their losses. A self-reinforcing feedback loop is created by this hurried buying, which pushes additional short positions out of the market and propels more rise. Intense price swings, high trading volumes, and, in the worst situations, exchanges temporarily stopping trading to restore stability are frequently the results of such incidents.
Infosys: Performance of Share Prices
Infosys shares saw a 3.2% increase on the stock market, reaching an intraday high of ₹1,639.60. The IT stock is still almost 15% behind its January 2025 52-week high of ₹1,982.55 and its April 2025 52-week low of ₹1,307.10. The stock has dropped 15% over the last year, but there has been recent positive momentum, with gains of 11% over the last three months and more than 8% in the last month.
0 Comments