Are Narayana Murthy and Nandan Nilekani selling their stake in Infosys?
- Author: Zachary Reyes Jun 09, 2017,
Jun 09, 2017, 15:55
According to the report, the co-founders of Infosys are exploring a sale of their combined 12.75% stake in the company worth about Rs 28000 crore. "The company further reiterates that it has no information on any such development", an official statement by the company said.
Information technology (IT) major Infosys today denied media speculations over its promoters, including co-founder N R Narayan Murthy, planning to sell their entire stake in the company. "This speculation has already been denied categorically by the promoters", the company said in a statement. The decision might have been triggered by the unhappiness they have expressed over the manner in which the company has been run ever since they took an exit three years ago.
They also say the co-founder group must let the management function freely as the IT business model is under going a revolutionary change, a report on firstpost.com said.
Promoters hold 12.75 percent while public shareholding is 86.76 percent, with the rest being held by Infosys Employees' Trust (0.49 percent).
Responding to ET's query, Murthy denied such talks of a stake sale and said, " It is not true at all", whereas, Nandan Nilekani said he refused to make any comments.
Narayana Murthy was particularly upset with the huge severance package offered to Infosys Former CFO Rajiv Bansal.
Any stake sale is most likely to take place through stock market block deals, and in tranches, the report added. He believed the board led by R Seshasayee had failed in its duty to guide the management in the right direction.
Infosys co-founders - Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, SD Shibulal and K Dinesh - hold neither executive nor non-executive roles in the company anymore. "It will enable them to focus more on the strategy and business of the company", the report said.
The company's shares were trading at Rs 940.10 per share, down 1.69 per cent around 1.30 p.m. on the Bombay Stock Exchange.