Infosys shares down 3 per cent, M-cap erodes by Rs 10,079 crore post CFO Ranganath's exit

Ranganath’s surprise decision after working with the company for over 18 years had raised questions regarding the stability at India’s second largest IT services firm.

Published: 21st August 2018 04:29 AM  |   Last Updated: 21st August 2018 04:29 AM   |  A+A-

Infosys

Infosys (Photo | File/Reuters)

By Express News Service

NEW DELHI: Shares of IT major Infosys tanked by three per cent on Monday, eroding the market capitalisation of the company by Rs 10,079.73 crore, to close at Rs 3,02,545.31 crore. During the day, the company’s shares opened on a weak note at Rs 1,388.70, and later reduced to an intraday low of Rs 1,373.55, down by 4.03 per cent. On NSE too, Infosys stocks fell 3.97 per cent to Rs 1,373.50 on intraday trade after opening at Rs 1,388.20. The shares closed at Rs 1,388.20, down by 2.95 per cent.

This was while the market benchmark BSE Sensex hitting new high of 38,278 and NSE Nifty closing at 11,552 on Monday, on account of hectic buying by investors amid positive global cues. The downward movement of Infosys stocks on Monday is widely attributed to the market sentiments post the resignation of the company’s chief financial officer MD Ranganath on Saturday. Ranganath’s surprise decision after working with the company for over 18 years had raised questions regarding the stability at India’s second largest IT services firm.

Ranganath took over the CFO role in Infosys in 2015 after the exit of Rajiv Bansal.

He is said to be leaving the company to “pursue professional opportunities in new areas” and is expected to continue in his current position till November 16, 2018, Infosys had said in a statement. The Board of Directors, which accepted Ranganath’s resignation at its meeting on August 18, said it will immediately commence the search for a successor for him.“After a successful career spanning 18 years in Infosys, including as CFO for the last three crucial years, I now plan to pursue professional opportunities in new areas,” Infosys had on Saturday quoted Ranganath as saying in his resignation letter.

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