Infosys saga explained: Vishal Sikka's exit & erosion of shareholder value

The overhang on the stock will persist unless the fundamental issues are tackled well

The price of Infosys Technologies' stock last week plummeted 10 per cent to Rs 923, thanks to the unsurprising exit of Vishal Sikka as the chief executive and managing director of the company. Worse, since his exit has been shrouded in controversies, the confidence that Sikka had built up in the stock since his appointment three years ago has also thinned significantly.

The exit was indeed inevitable and that is clear from the fairly incisive questions raised by co-founder N R Narayana Murthy – now in the public domain. The questions dwell upon Sikka, the board’s conduct, the Panaya acquisition,