Infosys stock plunged nearly 8 per cent today, eroding over Rs 14,000 crore from its market valuation, after the company's board member and President B G Srinivas, considered as the top contenders for the first non- founder CEO post, resigned.
The IT bellwether's scrip declined by 7.81 per cent to settle at Rs 2,924.30 on the BSE. In intra-day session, it had lost 8.1 per cent to Rs 2,915.
At the NSE, the stock tumbled 3.43 per cent to close at Rs 2,921.30. Infosys ended below the crucial Rs 3,000 mark for the first time since mid-September 2013.
The stock was the top loser among the blue-chips on both Sensex and Nifty. Tracking weakness in the stock the company's market capitalisation (m-cap) dropped by Rs 14,235.12 crore to Rs 1,67,923.88 crore.
"While the recent times have seen a huge exodus from Infosys, we believe that given the leadership quality and management track record, the company can cruise through the same," said Sarabjit Kour Nangra, VP Research, Angel Broking.
In terms of volumes, 4.04 lakh shares of the company changed hands on the BSE, while over 51 lakh shares were traded at the NSE during the day. Fall in the scrip was also instrumental in sending the BSE benchmark index Sensex down by 321.94 points to 24,234.15.
The stock also turned ex-dividend today for final dividend of Rs 43 per share for the year ended March 31. Infosys, the top loser in BSE 30-share Sensex, alone contributed more than 135 points to the barometer's fall.
Srinivas' is the 10th top-level exit from the Bangalore- based company since the return of co-founder NR Narayana Murthy at the helm of affairs in June last year.
Neither Srinivas nor the firm gave reasons for the sudden move, which outsiders like former Infosys CFO V Balakrishnan felt was because he may have lost out in the race for the top job.
Balakrishnan, who himself was considered a candidate while serving his tenure at Infosys, told PTI: "I think, he (Srinivas) would have resigned as he might have come to know that he is no more in the race for CEO."
Srinivas, who was Infosys' highest-paid executive (annual compensation of Rs 7.52 crore in 2013-14 fiscal), led key portfolios like financial services, manufacturing and public services. His resignation will be effective June 10.
Infosys in a statement had yesterday said: "The Board of Directors placed on record their deep sense of appreciation for the services rendered by BG Srinivas during his tenure as Member of the Board and for his contribution to the company."
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