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Promoters of Infosys lose Rs 2,871 cr in a day after Vishal Sikka’s exit

Narayana Murthy has been engaged in a bitter spat with the Infosys board and the management over what he sees as violations of corporate governance and they see as interference.

business Updated: Aug 18, 2017 23:50 IST
Nasrin Sultana
Nasrin Sultana
LiveMint, Mumbai
Infosys,Vishal Sikka,Vishal Sikka resigns
Infosys former CEO Vishal Sikka speaks from California through a video conference to journalists at company's headquarters in Bangalore, on August 18, 2017. (AP Photo)

Promoters of Infosys Ltd led by founder and former chairman NR Narayana Murthy lost Rs 2,871 crore in paper wealth on Friday after stocks of the software company plunged almost 10% following the exit of chief executive officer (CEO) Vishal Sikka—for which the board of the company blamed Murthy.

Murthy has been engaged in a bitter spat with the Infosys board and the management over what he sees as violations of corporate governance and they see as interference.

Overall, shareholders of the technology firm lost Rs 22,519.50 crore after the sell-off triggered by Sikka’s unexpected resignation.

The Infosys stock closed 9.6% lower at Rs 923.10, its biggest fall since 12 April 2013.

The promoters held 12.74% stake in the firm at the end of June; this is split between five families.

Sudha Gopalakrishnan, wife of Kris Gopalakrishnan who served as CEO and managing director between 2007 and 2011, lost about Rs 482.2 crore in notional wealth because of Friday’s share price fall. She held 2.14%, the most among individual promoters. She was followed by Rohan Murty, son of Narayana Murthy, who held a 1.38% stake and lost Rs 311.79 crore in Friday’s rout. Murthy’s individual loss in notional wealth: Rs 85.49 crore. If holdings are sectioned in terms of family, then the Murthy family lost Rs 774.62 crore, because it held the maximum stake of 3.44% among the promoters. It was followed by the Gopalakrishnan family, which saw the value of its stake plummet by Rs 717.95 crore. The Nilekani family too lost Rs 516.87 crore by virtue of its holding.

First Published: Aug 18, 2017 23:49 IST