IT major Infosys is no longer on the list of top 10 most valued companies on the BSE and the NSE as the stock has taken a beating following the abrupt exit of its CEO Vishal Sikka
“Enough is enough. You have drawn first blood. Do not mortally wound the organisation by persisting in your actions," Goswami says in his open letter to Murthy
The development comes a day after the IT major, which is also listed in the US, saw its CEO Vishal Sikka resign citing slander by founders, led by NR Narayana Murthy.
Infosys will buy back 11.3 crore shares at Rs 1,150 apiece, returning cash to investors at almost 25 per cent premium to the Friday’s closing price of Rs 923.10
Interestingly, the Infosys board blamed founder NR Narayana Murthy for Sikka’s resignation and the open spat led to company stocks plummeting nearly 10 per cent, with its market valuation falling by over Rs 22,518 crore.
For the week, both Sensex and Nifty recorded a gain of 311.09 points, or 0.99 percent, and 126.60 points, or 1.30 per cent, respectively. This is markets' sixth weekly rise in seven.
"My concern primarily was the deteriorating standard of corporate governance which I have repeatedly brought to the notice of the Infosys board," Murthy said
The Infosys founder claimed that at least three Independent Directors of the company told him that Vishal Sikka was “more chief technology officer (CTO) material than chief executive officer (CEO) material”
Vishal Sikka was the first non-promoter CEO at the helm at the $10 billion company
“Mr. Murthy’s continuous assault, including this latest letter, is the primary reason that the CEO, Dr. Vishal Sikka, has resigned despite strong board support,” Infosys informed the stock exchange.
After resigning as Infosys MD and CEO, Vishal Sikka made public his resignation letter on micro-blogging site Twitter.
In a letter to Infosys board members, Vishal Sikka cited “personal” attacks as one of the reasons for his resignation.
The buyback announcement by Infosys comes close on the heels after rivals TCS and Wipro
“The company has asked, for business reasons, MD Ranganath, the CFO, to operate from the US,” Infosys said in a filing on Friday.
Infosys maintained its revenue growth forecast for 2017- 18 to be in the range of 6.5-8.5 per cent in constant currency and 7.1-9.1 per cent in US dollar terms
Besides Murthy, Nandan Nilekani, S. Gopalakrishnan, S.D. Shibulal, K. Dinesh, N.S. Raghavan and Ashok Arora are the co-founders of India's second-largest software export firm.
A former head of immigration at IT major Infosys in the US has filed a lawsuit against the company, accusing it of "discrimination" against non-South Asian employees, and demanded a trial by jury
Based out of Bengaluru and founded by Infosys veterans Agrawal and Balaji G.S. Rao, GSTSTAR offers products and services for GST compliance and will help business transition to GST era smoothly
Companies across the world have begun to realise the severe reputational risks posed by social media.
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