Infosys CEO On The Recent Stake Sale By The Founders

Infosys Ltd ADR INFY has been poster child of India’s software services industry. However, in the last couple of years the company has failed to perform better than most of its competitors and even this year when the Indian markets overall are up by over 30%, the company’s stock has returned only 13%.

Shares of the company recently took a hit on news that its founders have sold $1 billion worth of stake in the company. Vishal Sikka, CEO of Infosys, who is also the first non-founder to become the CEO of the company, was recently on CNBC to discuss the stake sale by its founders.

“The Infosys founders are unlike any others in the history of Indian entrepreneurship. They have built an incredible company and they have been with the company with almost a third of a century. So, 33-34 years. It was long overdue, I think, it was part of a portfolio decision. A vast majority of their holdings are still there, they are still among the largest shareholders of the company,” Sikka said.

“One key thing that people don’t know about Infosys is the massive influence that Infosys has with regard to philanthropy. The Infosys foundation, which is rather still headed by Mrs. Murthy, the wife of our founder Mr. Murthy, it’s a huge activity for us, So, it was part of philanthropy, giving, entrepreneurship, this was the reason for their sale. A lot of work that the founders have done in this area hasn’t been appreciated very much. So, it is for that. They are fully committed to the management, to the company, its all good.”