DIIs want Nilekani on Infosys board
Around 12 key domestic institutional investors (DIIs) have written to Infosys, batting for co-founder Nandan Nilekani’s appointment to the board, and expressing their concerns over Vishal Sikka’s resignation from the post of CEO last week. “The recent developments are very concerning to us,” the email read.
On Friday, Sikka resigned abruptly triggering a leadership crisis at India’s second biggest information technology company. “After considerable thought and mutual deliberations, we strongly feel that the Board of Infosys should invite Mr. Nandan Nilekani to join the board in a suitable capacity,” the DIIs said in the email.
CNBC-TV18 first reported the development late on Tuesday.
“In our opinion, he enjoys the confidence of various stakeholders, viz. customers, stakeholders and employees,” they added.
Mint has reviewed a copy of the email.
Meanwhile, Infosys founder NR Narayana Murthy’s muchanticipated address to investors has been moved to next Tuesday.
Murthy, who was supposed to address investors in a much-anticipated call on Wednesday, was taken unwell, according to two people familiar with the developments. The address to investors was expected to assuage concerns of large shareholders of Infosys, who have been spooked by the events of the past week, during which Vishal Sikka resigned as CEO and the company subsequently blamed Murthy for Sikka’s decision to step down in a scathing six-page statement. The two events shocked the market and wiped out nearly ₹34,000 crore of market value in two trading sessions.
A few days before Infosys issued the statement against Murthy, he had written a letter, dated 9 August, to half a dozen of his closest advisers, in which he claimed that at least three Infosys board members had complained to him that Sikka was not CEO material, but more of a chief technology officer (CTO).
“Mr Murthy’s continuous assault, including this latest letter, is the primary reason that the CEO, Dr Vishal Sikka, has resigned despite strong board support,” said a statement by Infosys to the stock exchange on Friday. Murthy had responded to the statement from Infosys, saying that he was “extremely anguished by the allegations, tone and tenor of statements made by the board.”