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Infosys gains after Nandan Nilekani takes charge

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Capital Market
Last Updated : Aug 28 2017 | 10:28 AM IST

Infosys rose 2.95% to Rs 939.40 at 9:32 IST on BSE after the company appointed Nandan Nilekani as the chairman of the board with immediate effect.

Meanwhile, the S&P BSE Sensex was up 129.22 points, or 0.41% to 31,725.28.

On the BSE, 4.85 lakh shares were traded in the counter so far, compared with average daily volumes of 5.19 lakh shares in the past one quarter. The stock had hit a high of Rs 953.50 and a low of Rs 940.30 so far during the day. The stock hit a 52-week high of Rs 1,080.70 on 14 October 2016. The stock hit a 52-week low of Rs 861.50 on 22 August 2017.

The stock had underperformed the market over the past one month till 24 August 2017, falling 8.18% compared with 2.43% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 8.40% as against Sensex's 1.83% rise. The scrip had also underperformed the market in past one year, falling 11.97% as against Sensex's 13.51% rise.

The large-cap company has equity capital of Rs 1,148.48 crore. Face value per share is Rs 5.

In its press release issued after market hours on Thursday, 24 August 2017, Infosys has announced an overhaul of its board of directors (board). The board appointed Nandan Nilekani as a non-executive, non-independent director and as the chairman of the board with immediate effect. It has accepted the resignation of R. Seshasayee as the chairman of the board and as a director on the board with immediate effect.

The board has accepted the resignation of Dr. Vishal Sikka as the executive vice-chairman of the board and as a director on the board with immediate effect. It has accepted the resignation of Professor Jeffrey S. Lehman as a director on the board with immediate effect. It has accepted the resignation of Professor John Etchemendy as a director on the board with immediate effect. It has accepted the resignation of Ravi Venkatesan as the co-chairman of the board with immediate effect. However, he continues as an independent director.

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Infosys' board held its first meeting on Friday, 25 August 2017, chaired by its newly elected chairman Nandan Nilekani. Nilekani stated that the board is focused on bringing complete stability to the company. It has also tasked its committee of directors to work with the CEO (U B Pravin Rao) and management to review and refresh the company's strategy by October.

Nilekani was Infosys' CEO for five years till 2007. He left the software major in 2009 to become Chairman of the Unique Identification Authority of India (UIDAI).

Vishal Sikka, the first non-co-founder CEO of Infosys, stepped down on 18 August 2017 citing continuous distractions and increasingly personal attacks on him. The Infosys board blamed Murthy's continuous assault as the primary reason for Sikka putting down his papers. Shares of Infosys had tumbled 14.45% in two trading sessions to settle at Rs 873.50 on 21 August 2017, from its closing of Rs 1,021.15 on 17 August 2017.

Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017.

Infosys is a global leader in technology services and consulting.

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First Published: Aug 28 2017 | 9:32 AM IST

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