Infosys spurts after Narayana Murthy returns to board

The announcement was made on Saturday, 1 June 2013.

Meanwhile, the S&P BSE Sensex was up 50.16 points, or 0.25%, to 19,810.46.

On BSE, 1.01 lakh shares were traded in the counter as against an average daily volume of 1.38 lakh shares in the past one quarter.

The stock hit a high of Rs 2,624.90 and a low of Rs 2,524.80 so far during the day. The stock had hit a 52-week high of Rs 3,010 on 7 March 2013. The stock had hit a 52-week low of Rs 2,101.65 on 26 July 2012.

The stock had outperformed the market over the past one month till 31 May 2013, rising 7.75% compared with the Sensex's 1.31% rise. The scrip had, however, underperformed the market in past one quarter, sliding 17.15% as against Sensex's 4.77% rise.

The large-cap IT company has an equity capital of Rs 287.12 crore. Face value per share is Rs 5.

In a meeting held on Saturday, 1 June 2013, the board approved appointing Mr. N R Narayana Murthy as executive chairman of the board and additional director with effect from 1 June 2013.

Mr. Murthy's election as a director would be placed for the consideration of the company's shareholders in the annual general meeting (AGM) on June 15, 2013. Subject to his election as a director at the AGM, the board will take up in its meeting on 15 June 2013, the resolutions for convening an extraordinary general meeting within the requisite period, in order to seek approval from the shareholders for appointing him as the executive chairman and whole-time director for a period of five years commencing on 1 June 2013.

Mr. K V Kamath would step down from his position as chairman of the board and take up the position of lead independent director effective June 1, 2013.

Mr. K V Kamath said, The board has taken this step keeping in mind the challenges that the technology industry and the company faces and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening of the executive leadership during this challenging time. Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time.

Mr. N R Narayana Murthy said, "This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility. I am grateful to Mr. K V Kamath - the chairman, the board, and every Infoscion for giving me this opportunity. I intend to do my best to add value to the company in this challenging situation."

During his five year term, Mr. Murthy would draw a token compensation of Rupee one per year.

Mr. S Gopalakrishnan would be re-designated executive vice chairman effective 1 June 2013 and would primarily focus on key client relationships and broader industry issues. Mr. S D Shibulal would continue to be the managing director and CEO.

Mr. S Gopalakrishnan and Mr. S D Shibulal have requested that they draw a compensation of Rupee one per year. The board has accepted their requests, subject to necessary shareholder and government approvals.

In order to function more effectively Mr. Narayana Murthy intends to create the chairman's office to assist him during his tenure and has requested the board to permit him to put together a team for this function. The team will include his son, Dr. Rohan Murty, as Mr. Narayana Murthy's executive assistant.

The board has agreed to Mr. Narayana Murthy's requests, subject to necessary approvals.

Infosys' consolidated net profit rose 1% to Rs 2394 crore on 0.3% growth in sales to Rs 10454 crore in Q4 March 2013 over Q3 December 2012.

Infosys partners with global enterprises to drive their innovation-led growth. As a leading provider of next-generation consulting, technology and outsourcing solutions, Infosys helps clients in more than 30 countries realize their goals.

Powered by Capital Market - Live News