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Infosys gains over 4% on Nandan Nilekani's return; Nifty IT up nearly 1%

Infosys opened at Rs 947 and has hit a high and low of Rs 953.5 and Rs 937.9 respectively.

SI Reporter  |  New Delhi 

Nandan Nilekani
Illustration: Ajay Mohanty

gained as much as 4.4% to Rs 953.5 in the early morning deals after returned at the helm of India’s second-largest software exporter as a non-executive chairman of the company on late Thursday evening. In comparison, the index gained 1% while the benchmark indices were up around 0.4%.
Nandan Nilekani, non-executive chairman of Infosys, has promised to bring stability back to India’s second-largest software exporter in spite of a “complex environment”. He has set his sights on creating a long-term governance structure in the company while focusing on short-term measures such as hiring a chief executive officer (CEO) and building a business strategy for growth in a challenging environment.

Nilekani did not give details about the future strategy, apart from saying it would be made public in October.
The company appointed executive search firm Egon Zehnder to look for the replacement of former CEO Vishal Sikka, naming independent director D N Prahlad chairman of EdgeVerve Ltd, and committing to a broad-based engagement with all stakeholders, including the founders.

READ MORE: On Nandan Nilekani's to-do list: Build future-ready strategy, board
The board also admitted that it was “unfortunate that various differences of opinion have arisen between Mr. Murthy and the Board in the recent past” and “wishes to express that it was not its intention to cause Mr. Murthy or any other affected person any personal distress or anguish while stating its point of view”.
Among other peers like was one of the biggest losers on the benchmark indices down almost 1% while Tech Mahindra, and were trading 1%, 0.6% and 0.4% higher respectively in the early morning deals.
The stock fell as much as 14.4% after announced his resignation from the company as its MD and CEO. On the day of Sikka's resignation, lost Rs 22,418 crore of its market value, kicking it off the list of the top 10 companies by market capitalisation (m-cap).
At 9:43 am, the stock was trading at Rs 940, up 3% in an otherwise higher market. It opened at Rs 947 and has hit a high and low of Rs 953.5 and Rs 937.9 respectively.

First Published: Mon, August 28 2017. 09:43 IST