HCL Tech nears three-month low on top brass rejig buzz

The change in management could be announced as early as July-August when HCL Tech announces its full year results

HCL Technologies has dipped over 2% at Rs 472, extending its previous day’s around 3% fall on buzz that the information technology (IT) service provider is heading for top management change after its CEO, Vineet Nayar sold his entire stake in the company.

Nayar had sold 2.7 million equity shares of Rs 2 each or 0.39% stake of the company for Rs 134 crore, on June 7. After the transaction, his shareholding in the company has become nil.

The stock is underperforming the market since then, by falling 6% from Rs 502, compared to a marginal 0.39% drop in the sector index IT on the Bombay Stock Exchange (BSE). The benchmark index Sensex has appreciated by 1.43% during the same period.

 

According to news agency Reuters, Morgan Stanley has said that there could be a change in management responsibilities, with Nayar delegating more of his functions at HCL Technologies in the near future.

"The change in management could be announced as early as July-August when HCL Technologies announces its full year results,” added report.

A combined 511,062 shares have changed hands on the counter till noon deals on the NSE and BSE.