A day after the shocking episode of Vishal Sikka’s resignation from Infosys’ CEO post gave a jolt to the market, Infosys on Saturday announced a Rs 13,000 crore share buyback. According to media reports, Infosys would buy back up to 11,30,43,478 crore shares aggregating up to 4.92 per cent of the paid-up equity capital via tender route at a price of Rs 1,150, as per a BSE filing by Infosys. Earlier, it was reported by PTI that Infosys, India’s second-biggest software services exporter, will consider a proposal for buyback of its equity shares at its meeting to be held on August 19. The announcement comes close on the heels of the completion of a Rs 16,000 crore share buyback by rival Tata Consultancy Services (TCS).
“We would like to inform you pursuant to Regulation 29 (1)(b) of the Sebi (Listing Obligations and Discourse Requirements) Regulations, 2015, that the board of directors of Infosys Limited will consider a proposal for buyback of equity shares of the company at its meeting to be held on August 19, 2017,” Infosys Secretary A G S Manikanta said in a statement here yesterday.
The big buyback development comes after Vishal Sikka, the first non- founder CEO of Infosys Ltd, abruptly resigned due to the continuous assault and campaign by founder and ex-chairman NR Narayana Murthy. Sikka, 50, a former German IT major SAP executive under whose three-year tenure Infosys’ revenue rose by about 25 per cent, did not himself name Murthy directly as the reason for his exit but said he faced false, baseless, malicious and increasingly personal attacks.
Murthy said he was anguished by the allegations, tone and tenor of statements made by the Infosys board and it is below my dignity to respond to baseless insinuations.He said he will reply to the board’s allegations in the right manner, right forum and at an appropriate time.
The resignation follows a year-long acrimony between the board the high-profile founders led by Murthy, who raised issues of “poor corporate governance” and executive pay as well as doubts over acquisitions.
Founders still hold 12.75 per cent in Infosys.
While Pravin Rao, currently chief operating officer, has been named interim CEO, Sikka will become executive vice- chairman for USD 1 annual salary to help find new MD and CEO latest by March 31, 2018.