Infosys Infighting & Share Buyback

Vishal Sikka ex-MD & CEO Infosys

Similarly, the major losers in BSE Sensex on Tuesday during early morning trade were Adani Ports with 375 points down, followed by PowerGrid, SBIN and Hero Moto Corp with 219, 273 and 3945 points down respectively. The stock had hit a 52-week high of Rs 1,080.70 on 14 October 2016.

On BSE, 950 stocks were advancing whereas 1,431 stocks were lagging. The scrip had also underperformed the market in past one quarter, declining 8.81% as against Sensex's 2.61% rise.

On the BSE, Infosys' market capitalisation was Rs 2,00,640.07 crore, slightly higher than that of International Olympic Committee which stood at Rs 2,00,500.32 crore.

Shares of the IT firm tumbled 5.39 per cent to end at Rs 873.40 on the NSE.

Following Sikka's resignation, Infosys' ADS dropped as much as $1.43 per share, or almost 9 per cent, during intra-day trading on August 18, the day Sikka suddenly quit as CEO.

Infosys' board approved the proposal to buyback its fully paid-up equity shares at a face value of Rs 5 each for an amount not exceeding Rs 13,000 crore. The maximum buyback size is Rs 13000 crore.

Vishal Sikka, who resigned as the Managing Director and Chief Executive Officer of Infosys Ltd., on Friday cited that the continuous stream of distractions and disruptions are among the main reasons him behind his decision to quit. The board has accepted his resignation with immediate effect, the IT major said in a statement issued during trading hours on Friday, 18 August 2017. The IT giant of India appointed COO UB Pravin Rao as its interim CEO and now, in search of a capable boss to lead.

Infosys' revenue has increased by almost 25 per cent during Dr Sikka's tenure.

Sikka's resignation was the result of ongoing bad blood between the Infosys board of directors and the company's main founder N.R. Narayana Murthy.

The development comes a day after the IT major, which is also listed in the United States, saw its CEO Vishal Sikka resign citing slander by founders, led by NR Narayana Murthy. The attractive share buyback at Rs 1,150 apiece announced on Saturday could not stem the free fall as many brokerages have downgraded the stock, factoring in tough times ahead.

Infosys former CFO V Balakrishnan today asserted that Chairman R Seshasayee and Co-chair Ravi Venkatesan must step down as part of a board rejig before the country's second-largest IT firm kicks off search for a new CEO.

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