Sikka's relation with Murthy deteriorated over the past few months as the co-founder took his crusade against unsatisfactory corporate governance standards within the company. He helped increase Infosys's revenue by about 25 per cent since taking the helm three years ago.
The firm's MD and CEO Vishal Sikka quit on Friday, which was followed by a war of words between the company's board and its founder, NRN Murthy. In our view it is the Board which is saddled with eroded credibility, as it has defended Sikka against founders' allegations but has been unable to retain him.
He then went on to release a 9-page letter he had written to the company advisors on August 14 where he raised issues of "plummeting" corporate governance since September 2015.
Murthy is said to have criticised him for chartering private planes to meet clients. Sikka was the first outsider to run the company and he was brought in by Murthy after three decades of founders rule.
"There has clearly been a failure on the part of the board to get the company in the situation where it is now".
Only 23.57% of promoter votes are reported to have been cast in favour of reappointing Sikka as managing director and CEO in April 2016. "We have had several instances from severance pay, Ex-CFO (Rajiv Bansal) and Panaya.I think the answers are not forthcoming".More news: Trump Calls Peaceful Boston Protestors 'Agitators'
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Liquid assets including cash and cash equivalents and investments of Infosys were Rs 39,335, crore as on June 30, 2017, rising compared to Rs 38,773 crore as on March 31, 2017. The IT giant of India appointed COO UB Pravin Rao as its interim CEO and now, in search of a capable boss to lead. They have told me umpteen times that Dr Sikka is not a CEO material but CTO material. The boyish-looking Ranga, 55, who worked closely with Murthy during his second stint as Infosys chairman, may also be able to navigate the tensions between the board and co-founders.
Earlier on Tuesday, Sebi chief Ajay Tyagi said the market regulator is keeping a close tab on the share price movement of Infosys post the dramatic developments on Friday. This is a marginal uptick considering the investors lost Rs 33,076 crore in two days. From nearly Rs 30,000 crore, the founders' shares are worth Rs 25,594 crore as on Monday evening.
Buyback offer comprises a purchase of upto 11,30,43,478 equity shares aggregating up to 4.92% of the paid-up equity share capital of Infosys at a price of Rs 1,150 per share. The stock touched its lowest level since the start of Sikka's tenure. Despite share buyback announcement, IT major Infosys extended losses by falling 3 per cent, despite share.
Goswami's began his letter expressing how he admired the former Infosys chairman for over two decades but he says it is now time that Murthy explain his behaviour with the company and the resignation of the chairman Vishal Sikka publicly. Sometimes it had been related to remuneration, sometimes it was related to recruitment and sometimes it was about decisions taken by the company.
Murthy said such claims were "baseless", that he was "extremely anguished by the allegations, tone and tenor of the statements", and that he was not making a power play.