Shares of Infosys lost nearly 3.5 percent in early trade Friday, impacted by a news report that the company's co-founding members could be looking at a complete exit.
Infosys stock hit a low of Rs 923.05 before trimming losses to trade 1.8 percent lower at Rs 938.65.
Over 7.5 lakh shares changed hands on BSE as against two-week average volume of 3.10 lakh shares traded.
From the current levels, Infosys stock is just 4 percent down from its 52-week low of Rs 900.30.
Infosys co-founders NR Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, S D Shibulal and K Dinesh together hold 12.75 percent stake worth around Rs 28,000 crore in the company.
According to a report that appeared in The Times of India, Infosys promoters led by NR Narayana Murthy are looking to exit their holding because some of the decisions taken by the board and current CEO Vishal Sikka in recent times didn't match the highest corporate governance standards met during their tenure.
Murthy, however, has denied any such move to the newspaper, while Nilekani offered no comments.
The stake sale is likely to executed through block deals in the stock market, the report said, adding they will be careful with the move as selling the stake in one shot is likely to impact the share price.
The move, if true, comes after the co-founders' long spat with management over various issues, including corporate governance. The first indication of their unhappiness came out when they abstained from voting on a resolution to give a two-year extension to CEO Vishal Sikka.
Only last week, Murthy had once again expressed sadness over the likely layoffs at the company and suggested the senior executives should take a pay cut to accommodate more lower rung staff.
In December 2014, the co-founders and their family had sold 2.84 percent stake in Infosys for Rs 6,484 crore. The sale had brought down the stock price by 4.88 percent and the Sensex by 1.2 percent.
Published Date: Jun 09, 2017 10:53 AM | Updated Date: Jun 09, 2017 10:54 AM