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Monday, August 21, 2017

- By Yash Ved

Unless you live under a rock, you sure as hell would have had to bear the echos of the battle of giants within Infosys' boardroom

For those who like gossips, here's what happened: Infosys CEO Vishal Sikka says enough is enough and decides to quit the company and with this: all hell breaks loose. The company’s board puts the blame squarely on the company’s founder N.R. Narayana Murthy, saying his relentless rhetoric is the primary reason behind the abrupt exit.

With Infosys' first non-founder CEO resigning and the dirty laundry of the spat between the board and Murthy coming out in the open, the stock slipped from its high to 13 per cent down in intra day trade to touch its multi-year low of Rs 884.20 this Friday though closing in at Rs.924

In a bid to counter the overflow of negative sentiments, the board announces buyback of Rs.13000 crores at Rs.1150 a piece. Does it or would it work? Well, that's upto future but the stock bleeds away another 5 percent on Monday and reaches Rs.873 levels!

But wait! Hold on a moment! Who gained amidst all this? Apparently: no one! The situation clearly all sounds synonymous to that good old saying that when the elephants fight, the grass gets hurt!

Whether it was the tension between Sikka and Murthy or the spat between the Board and the founder, one can do as much root cause analysis of it as one wants but the fact remains that the 'discliplined investor' who trusted the name and bought shares at Rs.1k levels like a good boy is the one that has really had to bleed red! 

With such hard earned money of thousands at stake, it is high time that good sense prevails over ego and both Infosys board and Murthy do what they need to and that is stop being kiddish and work on providing some well deserved and credible confidence to the investors!


Disclosure: Views expressed are personal. The writers may hold position in the stocks discussed in above article

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