All the heavy boardroom drama has taken a severe toll on the Infosys share price. The shares registered a steep fall and closed at Rs 866.95 on Monday. However, The shares have bounced back since then and were trading at Rs 910 on Thursday morning, up by nearly 2%. The shares saw a steep rise yesterday, on the news that Nandan Nilekani is likely to begin a second innings at the Indian IT bellwether.
Nandan Nilekani is set to return as Non-executive chairman of the board , ET Now said, citing sources. The media house said that the other Co-founders of the company have completely ruled out Nilekani taking up any operational or business role at Infosys. What is more, Nilekani’s induction is likely to lead to complete rehaul of the current board. R Seshasayee, the current chairman of the board is likely to step down following NIlekani’s induction. Co-Chairman, Ravi Venkatesan, may also step down claims ET Now. The other directors who may exit the board include directors Roopa Kudva and Jeff Lehman.
Yesterday, sources told CNBC-TV18 that Nandan Nilekani’s return and role in the software giant would be “cleared” in the next 48 hours.
V Balakrishnan responded to the news saying that Nilekani should be brought back as the Chairman of the board.”If at all he comes back, he should come back as the chairman, all the corporate governance issues will be taken care of. The stakeholders will become more comfortable. That will be a good thing to happen.” Top domestic institutional investors in Infosys including HDFC Mutual Fund, Reliance Mutual Fund and Franklin Templeton had written to the board to bring Nilekani back to restore stakeholders’ confidence according to CNBC TV18.
In a letter to the Infosys board the top domestic institutional investors of the country who have investments in Infosys have shared that they would request the board of Infosys to invite Nandan Nilekani to be a part of the board, in any suitable capacity. The top DIIs have said that the recent developments have raised a lot of concerns. According to the top DIIs Nandan Nilekani enjoys the confidence of various stakeholders. “Given Nandan Nilekani’s credentials we feel that his joining the board at this stage will restore the confidence of the stakeholders in the company and also facilitate the resolution of the contentious issue that the company is facing presently,” CNBC TV18 reported the contents of the letter.
Nilekani was one of the seven founders that set up Infosys more than three decades ago and served as its CEO between March 2002 to April 2007.Nilekani left the company in 2009 to head the Unique Identification Authority of India (UIDAI), the Aadhaar authority. Nilekani held the role till 2014 before resigning to unsuccessfully contest Lok Sabha elections on a Congress ticket from Bengaluru (South).