Infosys shares drop 1% over report of CEO-promoter conflict
NEW DELHI: Shares of Infosys dropped over 1 per cent in Wednesday’s trade after the company called the report of a Rs 12,000 crore share buyback plan to be speculative.
There were reports that relations between the first non-promoter CEO of Infosys, Vishal Sikka, and a section of the IT major’s founders are ‘less than ideal’. That, too, weighed in on the stock price.
The stock fell 1.21 per cent to hit a low of Rs 933.30 on BSE.
In a filing to BSE, the company said there have been several reports in the media that the board of Infosys is meeting over the next few days to consider a Rs 12,000 crore share buyback.
In this regard, “the company would like to clarify that its policy is not to comment on rumours or speculations. Further, the company has always complied with its reportable obligations under LODR in a timely manner and will continue to do so.”
There was a report by The Times of India suggesting that select promoters have raised questions over a sharp increase in Sikka's compensation, the appointment of Punita Sinha, wife of Union Minister Jayant Sinha, as an independent director; and a large severance pay of Rs 17.4 crore to former CFO Rajiv Bansal.
In a faint echo of what happened at Bombay House, some of the promoter-shareholders are said to have expressed disquiet over what they see as shifting values, TOI reported.
There were reports that relations between the first non-promoter CEO of Infosys, Vishal Sikka, and a section of the IT major’s founders are ‘less than ideal’. That, too, weighed in on the stock price.
The stock fell 1.21 per cent to hit a low of Rs 933.30 on BSE.
In a filing to BSE, the company said there have been several reports in the media that the board of Infosys is meeting over the next few days to consider a Rs 12,000 crore share buyback.
In this regard, “the company would like to clarify that its policy is not to comment on rumours or speculations. Further, the company has always complied with its reportable obligations under LODR in a timely manner and will continue to do so.”
There was a report by The Times of India suggesting that select promoters have raised questions over a sharp increase in Sikka's compensation, the appointment of Punita Sinha, wife of Union Minister Jayant Sinha, as an independent director; and a large severance pay of Rs 17.4 crore to former CFO Rajiv Bansal.
In a faint echo of what happened at Bombay House, some of the promoter-shareholders are said to have expressed disquiet over what they see as shifting values, TOI reported.
