As a leadership crisis continues at Infosys, its investor and leading fund house UTI AMC has asked the board to clarify whether it remains committed to rebuilding its business around future opportunities after "hasty compromises" in last few years.
Sources said UTI Asset Management Company has written a letter to Infosys' board, wherein it said, "While current events have shaken that confidence, we believe there is sufficient maturity within the board and founder groups to do this in a manner that will provide lasting stability".
While UTI AMC holds 1.16 per cent stake in Infosys, a group of 12 institutional investors holding nearly 10 per cent equity in the company have also written to the board pitching for bringing back former CEO and co-founder Nandan Nilekani back on the board.
Expressing "deep concern at recent developments at Infosys", referring to sudden exit of its first non-founder CEO Vishal Sikka and the continuing slugfest between some promoters and the top management, UTI AMC said it hold just 1.16 per cent stake but it has been one of the company's oldest, and steadfastly committed, domestic institutional shareholders.
The fund house has asked the board to clarify whether Infosys remains committed to a transformation strategy aimed at rebuilding its business around future opportunities in a digital world and whether the IT giant is prepared to continue to invest in attracting and rebuilding human capital commensurate with this strategy.
Also, Infosys needs to clarify whether the institutional arrangements by which the board will be governed clearly defined such that the agreed strategy can be effectively executed.
"We are conscious that the last few years have witnessed hasty compromises that have not provided stable outcomes for the company's governance. We hope current events will allow for fundamental reflection on long term institutional arrangements, and not descend into mere conflict of personalities. That would be a wasted opportunity," as per the letter.
"We are hopeful that the company can recover its equilibrium soon, and will seek further engagement on these topics as needed," it added.
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