Infosys surges as Narayana Murthy takes charge

Shares of Infosys were up over 6% in early morning deals after the board on Saturday appointed NR Naryana Murthy as executive chairman

Shares of Infosys surged over 7% in early morning deals after the board on Saturday appointed NR Naryana Murthy as executive chairman for a period of five years.

This is the first time in corporate India that a retired chairman has been called back to head the same company in an executive capacity.

The reason for the appointment of Murthy seven years after he gave up his executive post and nearly two years after he retired as non-executive chairman is obvious, the software major has been grappling with a string of disappointing results and loss in market share.

NR Narayana Murthy replaces K V Kamath, who has now been named lead independent director.

The board would meet on June 15 to consider the resolutions for convening an extra-ordinary general meeting to seek approval from shareholders.

Over 860,000 shares were traded on both the stock exchanges so far.