Infosys Shares Slump Nearly 8% as CEO Contender Srinivas Quits - The New Indian Express

Infosys Shares Slump Nearly 8% as CEO Contender Srinivas Quits

Published: 29th May 2014 01:34 PM

Last Updated: 29th May 2014 01:34 PM

MUMBAI: Shares of Infosys plunged nearly 8 per cent in the morning trade today after its board member and President B G Srinivas, who was considered among the top contenders for the first non-founder CEO post, resigned from the company.

After making a weak opening, the stock of the IT major further tanked 7.63 per cent to Rs 2,930.10 on the BSE.

At the NSE, it tumbled 7.66 per cent to Rs 2,930.

The IT bellwether stock was the top loser among the 30- blue-chips on the BSE 30-scrip index, Sensex.

Fall in the scrip was also instrumental in sending the benchmark index Sensex down by 158.77 points to 24,397.32 at 1225 hrs.

This is the tenth top-level exit from the Bangalore-based company since the return of co-founder NR Narayana Murthy at the helm of affairs in June last year.

Neither Srinivas nor the firm gave reasons for the sudden move, which outsiders like former Infosys CFO V Balakrishnan felt was because he may have lost out in the race for the top job.

Balakrishnan -- who himself was considered a candidate while serving his tenure at Infosys -- told PTI: "I think, he (Srinivas) would have resigned as he might have come to know that he is no more in the race for CEO."

Srinivas, who was Infosys' highest-paid executive (annual compensation of Rs 7.52 crore in 2013-14 fiscal), led key portfolios like financial services, manufacturing and public services. His resignation will be effective June 10.

Infosys in a statement had yesterday said: "The Board of Directors placed on record their deep sense of appreciation for the services rendered by BG Srinivas during his tenure as Member of the Board and for his contribution to the company."

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