Ex-Infoscions call for share buyback

Ex-Infoscions call for share buyback

Concerns over the pace of change at India’s second-biggest software services company have spurred three former officers of Infosys Ltd  to seek Rs 11,200 crore in the form of a buyback for all shareholders.

Former senior employees V  Balakrishnan, T V Mohandas Pai and D N Prahlad are seeking Rs 3,850 a share, which is a premium of 9.6 per cent over the company's closing price of Rs 3,513 on Tuesday.

Both Mohandas Pai and Balakrishnan are former chief financial officers at Infosys and served as directors, while Prahlad was a senior vice president.

The demand comes at a time when Infosys is in the middle of the biggest leadership transition in its history.  On August 1, former SAP AG executive Vishal Sikka took charge as the first non-founder Chief Executive Officer  at the company, while all founders, led by N R Narayana Murthy, either retired or took up non-executive roles with the board.

The buyback, if executed, will be the company's first since Infosys went public. In the letter to the board, the investors said while Infosys has close to 300 billion rupees in cash and cash equivalents, the company has not articulated its strategy for use of its cash effectively.

The Infosys board and the management receives requests on a variety of subjects from shareholders and investors on an on-going basis.