The families of four co-founders of Infosys sold shares worth $1.1 billion (around Rs 6,484 crore) in India’s second-largest IT services company on Monday. The sale, which led to a 4.88 per cent fall in the Infosys share to Rs 1,968.60 on the BSE on Monday, also added to the selling pressure in tech counters and weakened the general sentiment, pulling the Sensex down by 338.70 points to 28,119.40.
While the co-founders gained over Rs 6,400 crore from the sale, investors lost close to Rs 11,000 crore as market capitalisation fell to Rs 2,26,087 crore on Monday.
“Narayana Murthy, Nandan Nilekani and Dinesh K, and some of their family members, as well as wife of co-founder SD Shibulal, have sold 32.6 million shares of Infosys for approximately Rs 6,484 crore, constituting around 2.8 per cent of shares outstanding. The sale of shares was executed at an average price of Rs 1,988.87. The shares were sold to institutional investors, both FIIs and domestic,” Deutsche Equities India, the sole broker for the deal.
As on September 30, 2014, the total promoter stake in Infosys was 15.92 per cent while foreign investors owned 42.67 per cent. The sale has happened at a time when FIIs and domestic institutions have been hiking stakes in the tech company. Infosys co-founders had recently told the company to declassify them as promoters. “The decline in the Sensex was led by the IT counters as sentiments got hit after some of the founders of IT major Infosys decided to sell shares. The stake sale leads to several questions on the future of the company,” said an analyst.
The stake sale came after former SAP official Vishal Sikka recently joined Infy as the CEO after all the original promoters left from its management positions.
Narayana Murthy, Founder of Infosys, said, “Even after this sale our family continues to be the largest shareholder among retail shareholders. We have tremendous confidence in the future of Infosys and its leaders.”
The NSE 50-share Nifty fell 100.05 points, or 1.17 per cent, to finish below key 8,500-mark at 8,438.25. This is also its sharpest fall since the 115.8-point drop on October 16. TCS fell by 2.51 per cent and Wipro 1.62 per cent. HDFC Bank and ICICI Bank lost about 1.5 per cent each.