Infosys Technologies chief mentor and chairman NR Narayana Murthy has sold 800,000 shares, valued at Rs 177 crore (Rs 1.77 billion/$37.9 million), from his holding in the company to fund young entrepreneurs with brilliant ideas.
"Murthy intimated to the company that the proceeds of the sale will be used as seed capital for the proposed venture capital fund to be set up in India," Infosys said in a regulatory filing to the Bombay Stock Exchange (BSE) on Thursday.
The blue chip company's share of Rs 5 on par ended at Rs 2,211 on the BSE on Thursday, an increase of 2.13 percent over Wednesday closing.
"The fund will primarily invest in India and may on a case-to-case basis consider investing overseas," Infosys said in the statement.
As one of the co-founders of the global software major, Murthy's holding in the company post-selling will be around 2.38 million shares.
"Murthy wants to encourage young entrepreneurs to start companies to transform India. I am sure it will inspire other industry leaders to start such funds," Infosys director TV Mohandas Pai told IANS.
Terming Murthy's proposal a path-breaking initiative, Pai said the venture fund would help budding entrepreneurs to set up innovative start-ups that can capitalise on the emerging opportunities.
"Murthy believe that entrepreneurship creates jobs and that is the only way to escape cycles of poverty for a country like India," Pai added.
Murthy, who is travelling in the US, was unavailable for comment.