Bengaluru: The families of four Infosys co-founders, N R Narayana Murthy, Nandan Nilekani, S D Shibulal and K Dinesh, on Monday sold 32.6 million shares worth over $1 billion (Rs 6,484 crore).
The sales created ripple effect in the market with the IT bellwether shares plunging 4.88 per cent to close at Rs 1,968.60 at the Bombay Stock Exchange and eroding almost $2 billion from the company’s market capitalisation.
The Sensex closed at 28,119.40 points, down 338.60 points or 1.19 per cent from the previous day’s close.
According to Deutsche Equities India’s Sanjay Sharma, who closed the deal, the four promoters sold 32.6 million shares, through multiple deals by Murthy, Nilekani, Dinesh and some of their family members, and Shibulal.
“Of the promoter group’s 15.9 per cent share holding in the company, 2.8 per cent share was sold in the deal and now their stake has reduced to 13.1 per cent. The share purchase deal was signed last week and I cannot reveal the name of domestic and foreign institutional investors,” Sharma said.
Infosys was founded in 1981 by seven engineers who pooled in just a couple of thousand rupees. In the current deal, the promoters sold shares at an average price of Rs 1,988.87 per share.
Murthy and family sold 12 million shares (23.3 per cent of their holding), Nilekani and family sold 12 million shares (31.3 per cent of their holding), Dinesh and family 6.2 million shares (21.5 per cent of their holding) and Kumari Shibulal 2.4 million shares (9.6 per cent of their holding).
The last share sale from the founders and their family members took place in August 22, 2014, when Shibulal sold 100,000 shares for a face value of Rs 3,601 per share and amassed Rs 36.01 crore.
Infosys, from Page 1
Infosys CEO Vishal Sikka said the founders continue to be among the largest retail shareholders in the company. “They have reiterated their commitment to the future of the company and reinforced their belief in and support of its leadership. The founders have left an indelible legacy and culture in this iconic company and I respect and trust their decision of contributing towards philanthropic activities, entrepreneurship and other initiatives,” Sikka said.
Commenting on the development, former Infosys CFO and chairman of Manipal Global Education, Mohandas Pai, said that the share sale is a good move. “Corporate India needs founders to become investors and get away from the management,” he said.
When contacted by Deccan Herald, Infosys issued a statement on behalf of Murthy: “Our family has sold a minor part of our stake to continue various activities, including our efforts to encourage entrepreneurship and our personal philanthropic efforts.”
Infosys share sales has come at a time when the company is witnessing a major governance and management restructuring with all the original promoters exiting the management and Vishal Sikka becoming the first outsider CEO.
