Software services major Infosys’ shares nose-dived 21% on Friday, eroding Rs 35,740 crore in market value as the software services major reported lower quarterly profit and forecast subdued revenue growth due to fragile business confidence in the US.
The plunge in share prices of the IT major, once considered the industry bellwether, also led to a huge erosion of share wealth of its famed promoters who once ushered in the software revolution in India.
In total, around Rs 4,796 crore in share value was wiped out of the founding promoters including NR Narayana Murthy, Nandan Nilekani, S “Kris” Gopalakrishnan and SD Shibulal.
The iconic Murthy, who along with his wife and children owns 4.47% stake in the company, lost around Rs 1,602 crore in share value, while former CEO Nandan Nilekani, who alongwith his family owns 3.44% stake in the company, saw his share wealth erode by Rs 1,229 crore. S Gopalakrishnan and his wife who owns 3.3% saw his share wealth deplete by Rs 1,179 crore. Current CEO and managing director SD Shibulal, who owns 2.2% in the company, also lost Rs 786 crore in today’s bloodbath.
The promoter founders of the company find mention in the elite club of the prestigious Forbes billionaire list. Infosys is a loosely held company with promoters holding just 16% of shares.
The company reported a 3.4% rise in consolidated net profit to Rs 2,394 crore for the fourth quarter of the last fiscal year. Revenues for the quarter ended March 31, 2013 were up 18.1% to Rs 10,454 crore. The dip in share value came after the company reported 6-10% revenue growth, way below the industry average.
Infosys stocks closed down 21% to Rs 2295.45 on the Bombay Stock Exchange.