Promoters of Infosys Ltd led by founder and former chairman N.R. Narayana Murthy lost Rs2,871 crore in paper wealth on Friday after stocks of the software company plunged almost 10% following the exit of chief executive officer (CEO) Vishal Sikka—for which the board of the company blamed Murthy.
Murthy has been engaged in a bitter spat with the Infosys board and the management over what he sees as violations of corporate governance and they see as interference.
Overall, shareholders of the technology firm lost Rs22,519.50 crore after the sell-off triggered by Sikka’s unexpected resignation. The Infosys stock closed 9.6% lower at Rs923.10, its biggest fall since 12 April 2013.
The promoters held 12.74% stake in the firm at the end of June; this is split between five families.
Sudha Gopalakrishnan, wife of Kris Gopalakrishnan who served as CEO and managing director between 2007 and 2011, lost about Rs482.2 crore in notional wealth because of Friday’s share price fall. She held 2.14%, the most among individual promoters. She was followed by Rohan Murty, son of Narayana Murthy, who held a 1.38% stake and lost Rs311.79 crore in Friday’s rout. Murthy’s individual loss in notional wealth: Rs85.49 crore.
If holdings are sectioned in terms of family, then the Murthy family lost Rs774.62 crore, because it held the maximum stake of 3.44% among the promoters. It was followed by the Gopalakrishnan family, which saw the value of its stake plummet by Rs717.95 crore. The Nilekani family too lost Rs516.87 crore by virtue of its holding.