New Delhi, Dec 4 (PTI) Shares of Infosys today settledwith gains of nearly 3 per cent on the bourses after theappointment of the new CEO and MD Salil Parekh.
On December 2, Infosys said it has appointed Parekh asits CEO and Managing Director, concluding the three-monthhigh-profile executive search at the country's second largestIT firm.
During the day, the company opened on a bullish note atRs 983.00 then gained further ground and surged 4.01 per centto touch an intra-day high of Rs 996.95 on the BSE. The stockhowever pared some gains and finally ended the day at Rs985.30, up 2.80 per cent.
On the NSE, the stock opened at Rs 980, then surged to anearly-high of Rs 996.80, registering a jump of 3.96 per centover its previous closing price. At the end of today's tradingsession, the stock was quoted at Rs 984.40, up 2.67 per cent.
Market analysts believe the uptick in the counter waslargely because the appointment of CEO reduces successionplanning uncertainty in the counter.
"The CEO appointment is faster that our expectation andreduces the uncertainty on succession planning at Infosys,"Japanese brokerage firm Nomura said in a research note.
It further added that the current CEO designate hasexperience across a wide range of areas – consulting,application services, cloud infrastructure services,integrating large acquisitions (Kanbay/iGATE) and scaling upthe offshore delivery base of Capgemini to more than 100Kpeople currently.
The Bengaluru-based firm had initiated the executivesearch after CEO Vishal Sikka resigned in August following aprotracted acrimony between the management and the founders.
UB Pravin Rao, who was filling in the CEO role on aninterim basis, will now continue as Chief Operating Officerand a whole-time director of the company, Infosys said in astatement.
Parekh, who will take over his role at Infosys on January2, 2018 for a period of five years, was a member of the GroupExecutive Board at French firm Capgemini. PTI DRRSBT.
This is unedited, unformatted feed from the Press Trust of India wire.