Promoters to participate in Infosys buyback

Nandan Nilekani said his priorities were to find a CEO, reconstitute the board and shape future strategy, as he sought to calm investors unnerved by the recent exit of Vishal Sikka. “I have come in to focus on the future of the company, I have come in to take the company forward and deal with its challenges,”

By: ENS Economic Bureau | Mumbai | Published: August 29, 2017 1:40 am
nandan nilekani, infosys, vishal sikka, infosys shares, infoysys promoters, R Seshasayee, Dalal Street, NSE Nifty, infosys chairman, infosys board of directors Nandan Nilekani (Express Photo/File)

Four days after the appointment of Nandan Nilekani as Infosys non-executive chairman, the promoters have expressed the intent to participate in the Rs 13,000-crore share buyback programme. Infosys shares rose by 3.14 per cent on Monday, the first day of trading after Nilekani’s return. The intimation of promoters’ participation in the proposed buyback has come after prolonged acrimony between the founders and the management over alleged corporate governance lapses which led to the abrupt exit of CEO Vishal Sikka.

“In terms of buyback regulations, under the tender offer route, the promoters have the option to participate in the buyback. We would like to inform…that some of the members of the promoter and promoters group of the company have communicated their intention to participate in the proposed buyback,” Infosys said in a regulatory filing. However, the names of the promoters that are keen to participate were not immediately known.
Nilekani joining as non-executive chairman in the board-level shake-up also saw the exit of chairman R Seshasayee along with two independent members. The founders, including NR Narayana Murthy, hold around 12.75 per cent in Infosys.

Dalal Street continued to stay positive about the appointment of the Aadhaar architect as Infosys’ new chairman. This clearly showed in the stock, which was the biggest Sensex gainer with a rise of 3.14 per cent at Rs 941.15. “The market praised the calmness at the border due to an end to the military stand-off. Additionally, relief rally on IT major with a scope of stability returning to the management also supported the market,” said Vinod Nair, head of research, Geojit Financial Services.

Nilekani said his priorities were to find a CEO, reconstitute the board and shape future strategy, as he sought to calm investors unnerved by the recent exit of Sikka. “I have come in to focus on the future of the company, I have come in to take the company forward and deal with its challenges,” Nilekani told investors on a conference call on Friday, adding he would stay with the IT firm for as long as needed.

Meanwhile, domestic investors continued to play sheet-anchor with their buying push as the 30-share Sensex ended at 31,750.82, up 154.76, points — 0.49 per cent. The gauge had gained 337.21 points in the previous three sessions. The NSE Nifty ended higher 55.75 points, or 0.57 per cent, at 9,912.80 after moving between 9,925.75 and 9,882.

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