LIC's stake in Infosys rises to 7.02%

Life Insurance Corporation of India (LIC) on Saturday said it has acquired an additional 2% stake in Infosys in over three years ending February 2017, taking its total shareholding in the company to 7.02%.

LIC, in a regulatory filing, said it has acquired about 4.63 crore shares or 2.016% stake, thus taking its total holding in Infosys to 7.023%. The transactions were made through market purchases between September 26, 2013 and February 07, 2017, it said.

LIC said that the equity share capital/total voting capital of Infosys after the deal stood unchanged at 229.6 crore shares of face value of Rs 5. LIC is the largest shareholder in Infosys among other insurance companies like ICICI Prudential Life Insurance and Deutsche Bank Trust Company.

Over the last few days, Infosys has come under fire from its founders like N R Narayana Murthy, who have raised concerns on corporate governance lapses and questioned the compensation paid to CEO Vishal Sikka and hefty severance packages offered to two top-level executives who quit the company.

Sikka was paid Rs 48.7 crore in base salary, bonus and benefits last year as compared to base salary of Rs 4.5 crore for a partial period in 2015. Murthy has questioned “paying the former CFO (Rajiv Bansal) a 30-month severance pay which amounted to Rs 23 crore.”

Infosys, however, has denied any corporate governance lapses, and emphasised that its board is fully aligned with the strategic direction of Sikka and is very “appreciative of the initiatives taken by him in pursuance of this transformation”.

To douse the fire, Infosys has appointed law firm Cyril Amarchand Mangaldas for mediation talks between various shareholders including the founders.