Infosys denies promoters selling stake

Infosys denies promoters selling stake
Infosys, India’s second largest IT services exporter, on Friday categorically denied a media report that its founders were looking to sell off their holding in the company.

Referring to a report in the section of the press, the company said it “has no information on any such development.”

In a statement issued here the company said, “We would like to appeal to the media not to fuel such speculative stories as they are likely to harm the interests of the company and all its stakeholders.” This speculation has already been categorically denied by the promoters, it said.

The founder promoters of Infosys led by N R Narayana Murthy hold a combined 12.75% stake in the company. Murthy together with his family members hold a maximum of 3.44% stake in the company.

When DH sent an email query on the development, Murthy didn’t respond. Kris Gopalakrishnan on the other hand said he will not comment on Infosys.

The last sale of promoter stake happened when Kris Gopalakrishnan and SD Shibulal sold 50 lakh and 25 lakh shares respectively via block deals in March 2016. The 75 lakh shares, representing 0.3% stake in Infosys, were offered in a price range of Rs 1,149 and Rs 1,178.5 per share.

Commenting on the development, Infosys Chief Executive Officer Vishal Sikka in a statement to a media house said he would fully trust any decision that Murthy and founders make, as one of high integrity and driven by a deep sense of purpose and values. He also maintained that as Murthy had denied this development, it should be put to rest.

“There is too much noise these days and it distracts from the business as we steer it to purposeful growth in an already challenging environment,” Sikka stated.

In the recent days, Infosys’ founder promoters including N R Narayana Murthy had expressed concerns over transparency and corporate governance under the leadership of the present management led by Sikka since their exit three years ago.

They had also raised concerns about the payment of Rs 17.38 crore severance package to former CFO Rajiv Bansal. Murthy then onwards sought exit of Chairman R Seshasayee, saying that the board had failed in its fiduciary responsibility.

To douse the fire, Infosys management inducted Ravi Venkatesan as co-chairman and appointed law firm Cyril Amarchand Mangaldas to mediate between the founders.
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