Panaya pain haunts Infosys; Parekh assures stronger due diligence in AGM

Why is the company selling Panaya? Infosys is not a loss-making company, says Sadananda Shastri, a veteran shareholder and a regular at Infosys AGMs

The Panaya and Skava issues dominated the discussion at the 37th annual general meeting of Infosys on Saturday, with shareholders questioning the board’s decision to acquire the two firms and then sell them. Constant buying and selling of subsidiaries, they said, proved to be a drain on the cash flow of the company, eroding shareholders’ wealth. They also flagged up concerns about the rising number of loss-making subsidiaries. 

Shareholders were, however, appreciative of Salil Parekh’s appointment as the chief executive officer and managing director of India’s second-largest information technology services firm, and reposed strong faith in his ability to chart out