Nandan Nilekani is likely to be brought back to Infosys. Top MFs say that his return will restore the confidence of the stakeholders in the company.
In a latest twist to the Infosys saga, Nandan Nilekani, one of the Co-founders of the company, is likely to brought back to head the Indian IT bellwether, reports CNBC TV18, citing sources. 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.” However, he says that right now it’s all speculation.
Yesterday, 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 the end the shareholders may be the deciding factor in the tussle between the board and Narayana Murthy. In a letter to the Infosys board yesterday, 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. Apparently, 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 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).
Meanwhile, Narayana Murthy, the Infosys Co-founder has deferred the concall in which he was set to address the investors citing health reasons. The concall will now happen on August 29, ET Now said citing unidentified sources. The concall was initially scheduled for 6.30 PM today.