Shares of the India’s second largest information technology services company Infosys plunged as much as 9% today after company’s CEO and MD Vishal Sikka resigned from the post. The stock of the IT company fell tumbled 9.38% near to its 52-week low of at Rs 925. However, the shares of the company have returned around 22% till the yesterday’s closing price from the last three years since the appointment of Vishal Sikka.
From the last three years, Infosys has announced the issue of bonus shares in the ratio of 1:1 two times after Vishal Sikka has taken over as company’s CEO on 1 August 2017. Since then, the first bonus share issue came into effect in December 2014 and another in June 2015. On contrary, Infosys shares were the lead gainers on the Indian bourses yesterday after the company said that it will consider the proposal of share repurchase in its board meeting which is scheduled for tomorrow, 19 August.
Earlier today, Vishal Sikka, who had joined Infosys three years ago in 2014 from SAP, said that he is resigning from Infosys on the account of rising personal disruptions as founder Narayana Murthy’s attacks on the company management over corporate governance continue to grow. Vishal Sikka said that 100s of hours were spent on tackling drumbeat of distraction and that the attacks undermined the good work done by the company. UB Pravin Rao will serve as the interim MD & CEO of Infosys.
Recently this week, Infosys has said it will consider a share buyback, India’s second largest information technology services company Infosys Ltd has said it will consider a proposal for buyback of equity shares of the company later this week at its board meeting on tomorrow, 19 August. Infosys did not disclose details of the proposed share buyback in the intimation sent to the stock exchanges on Wednesday, however, previous news reports have pegged its size to be at around Rs 16,000-17,000 crore.
The ongoing tussle between Infosys founder N R Narayana Murthy and the board, which started sometime late last year, continued to turn murkier, with the veteran most recently asking that the findings of the law firm Cyril Amarchand Mangaldas relating to corporate governance lapses be made public. Previously, the founders led by N R Narayan Murthy had raised issues pertaining to the quantum of salary hike given to Vishal Sikka and the size of the severance packages given to former CFO Rajiv Bansal and former General Counsel David Kennedy.