Infosys founders might sell their entire stake in company
Jun 9, 2017, 12:15 IST
Co-founders of Indian IT giant Infosys are looking forward to selling out their entire 12.75% stake in the company worth about Rs 28,000 crore.
The decision might have been triggered by the unhappiness they have expressed over the manner in which the company has been run ever since they took an exit three years ago.
Instead of choosing to lack horns with the company's board and management, the promoters seem to have decided to take a complete break from the company that was founded in 1981 and went public in 1993.
The co-founder group, led by N R Narayana Murthy and Nandan Nilekani, are seen as torch bearers for the Indian middle class that chose to earn a degree and then become an entrepreneur instead of going for salaried jobs.
It was because of their efforts that the story of Indian software was spread around the world.
The sale of their stakes would most probably take place through stock market block deals and would be done in parts, and a single, block deal would most likely not happen.
"Large private equity or sovereign wealth funds (SWFs) won't be enthused to write $4-5 billion cheques to be minority investors without any rights," said a top banker who spoke on condition of anonymity.
However, Narayana Murthy has denied that the promoters are about to sell their holding in the company.
"It is not true at all," he told ET.
Murthy and his family hold the largest promoter stake of 3.44%.
Even though these co-founders, including Murthy, Nilekani, Kris Gopalakrishnan, SD Shibulal and K Dinesh are no longer associated with the company as either executives or non-executives, their exit could stir the stock prices, something for which the company might not be ready for amidst the rising pressure that the Indian IT industry is facing.
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The decision might have been triggered by the unhappiness they have expressed over the manner in which the company has been run ever since they took an exit three years ago.
Instead of choosing to lack horns with the company's board and management, the promoters seem to have decided to take a complete break from the company that was founded in 1981 and went public in 1993.
The co-founder group, led by N R Narayana Murthy and Nandan Nilekani, are seen as torch bearers for the Indian middle class that chose to earn a degree and then become an entrepreneur instead of going for salaried jobs.
It was because of their efforts that the story of Indian software was spread around the world.
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"Large private equity or sovereign wealth funds (SWFs) won't be enthused to write $4-5 billion cheques to be minority investors without any rights," said a top banker who spoke on condition of anonymity.
However, Narayana Murthy has denied that the promoters are about to sell their holding in the company.
"It is not true at all," he told ET.
Murthy and his family hold the largest promoter stake of 3.44%.
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When contacted for a statement, Nandan Nilekani said, "I do not comment on Infosys." Even though these co-founders, including Murthy, Nilekani, Kris Gopalakrishnan, SD Shibulal and K Dinesh are no longer associated with the company as either executives or non-executives, their exit could stir the stock prices, something for which the company might not be ready for amidst the rising pressure that the Indian IT industry is facing.