You are here: Home » Companies » News
Business Standard

Infosys founders will participate in Rs 13,000-crore share buyback

This comes after Nilekani became chairman to stem the crisis that emerged after Sikka's resignation

Ayan Pramanik  |  Bengaluru 

Infosys

Infosys on Monday said some of its founders would participate in the company’s share buyback, a disclosure that comes after Nandan Nilekani became chairman of the firm to stem the crisis that emerged after Vishal Sikka’s exit as chief executive officer (CEO).

was the first non-promoter CEO in the company. The founders, who, along with their family members, are categorised as the promoter group, hold 12.74 per cent or a little more than 292 million equity shares in the information technology (IT) services major. 

Infosys was founded by N R and six others, and their shares were distributed among family members also.

Sudha Gopalakrishnan, wife of co-founder S ‘Kris’ Gopalakrishnan, holds the highest number of shares, over 49 million, followed by Rohan Murty, son of N R (more than 31 million).

“In terms of the regulations, under the tender offer route, the promoters have the option to participate in the We would like to inform you that some of the members of the promoter and promoter group of the company have communicated their intention to participate in the proposed buyback,” said the company in a note to the on Monday. 


Bengaluru-based Infosys had announced a Rs 13,000-crore share on August 19, offering Rs 1,150 per share to purchase around 4.92 per cent of the stocks held by the shareholders. 

The has been a long-standing demand of some founders and high-profile former executives, who have been pushing the IT major to return surplus capital to its shareholders. Infosys reported cash and cash equivalents and investments worth Rs 39,335 crore as of June 30. A day before the announcement, resigned, and that led to a public spat between the Infosys board and Murthy. The board had blamed Murthy for Sikka’s exit, and this forced analysts and shareholders to lose confidence in the company. Shareholders lost nearly Rs 34,000 crore in market capitalisation in the immediate aftermath of the resignation.

graph
As of truce emerged last week, the stock gained. Last Thursday, R Seshasayee quit as chairman and so did two independent directors and Sikka, paving the way for the return of Nilekani as non-executive and non-independent chairman. 


Nilekani then listed measures such as finding a CEO, expanding the board, and preparing a strategy for the growth of the company, reviving shareholder confidence.

The Infosys stock gained Rs 28.65, or 3.14 per cent, at the close of trading on Monday on the

 


First Published: Tue, August 29 2017. 00:23 IST
RECOMMENDED FOR YOU