Certain co-founders of tech giant Infosys on Monday sold a massive chunk of shares (33 million to be precise) for an amount totaling up to 6500 crores. The move took place as a result of the philanthropic objectives of these co-founders; Narayana Murthy, Nandan Nilekani, K Dinesh and SD Shibulal along with their family members sold shares that represented 2.8 percent of the organizations market capital. Murthy and Nilekani sold around 12 million shares respectively. While K Dinesh sold 62 lacs’ shares and former chief executive Shibulal sold shares worth 24 lacs.
Sikka, the first non-founder CEO of Infosys, had to say, “As I have always said, the founders have left an indelible legacy and culture in this iconic company and I respect and trust their decision of contributing towards philanthropic activities and entrepreneurship and other initiatives”
Since the past two years, the tech giant’s performance has been far from satisfactory. During this time, it has also been conceded by its market share to rival Tata Consultancy Services Ltd and thus was knocked off its perch. Newly inducted chief executive, Vishal Sikka has been experimenting with different options in order to revive the company’s growth and re-instill confidence among the shareholders. Just last week he indicated that his company plans to improve training methods for employees, increase fixed salaries and bonus payouts and is even open to quarterly promotions to motivate employees.
Not one to shy away from constant innovations, Sikka also plans to incorporate artificial intelligence and other innovative technologies in order to radically develop the services that Infosys offers to its clients.
It must be noted that Infosys has been the best performing stock on BSE Sensex since the past twenty years. Hence any doubts regarding the company’s future potential has been dismissed. One must also realize that the four individuals who have sold their shares are not actively involved in the daily workings of the organization.
They no longer form the nucleus of the tech giant. Hence in the long run, this massive sale would do little harm to the company’s future. When four former top contributors at Infosys sell their shares at the same time, it is bound to attract attention and scrutiny.
However Vishal Sikka and his team have a long term strategy, where in they plan to provide superior quality services through better trained and educated employees by incorporating futuristic technologies. Hopefully this will manage to improve the people’s perception about Infosys and its potential.