The Hindu Business Line : Infosys shareholders give their nod

Mr N.R. Narayana Murthy, Chairman and Chief Mentor, Infosys, at the Annunal General Meeting in Bangalore on Saturday. Also seen are Mr Nandan Nilekani, CEO, Mr Mohandas Pai, CFO, and Mr S. Gopalakrishnan, COO. - G.R.N. Somashekar

Bangalore , June 12

MILLIONAIRE investors cheered the Infosys management wholeheartedly at the company's 23rd Annual General Meeting on Saturday for the bounty showered on them by way of a liberal bonus issue and generous dividends.

Shareholders, among other things, approved a hike in the company's authorised capital, which is mandatory following the 3:1 bonus issue tracking Infosys Technologies reaching the billion-dollar revenue mark. Infosys is increasing its authorised share capital from Rs 50 crore to Rs 150 crore.

"Investing in Infosys shares 20 years ago would have generated greater returns now than investing in (educating) four children," said one shareholder Mr Chawda from Hyderabad. This reflected the general sentiment showered on the Infosys management as shareholders heaped praises on steering the company to the billion-dollar revenue mark.

The shareholders also approved the bonus issue and the 2,590 per cent dividend (Rs 129 per share of par value Rs 5 each) including a special dividend of Rs 100 per share, which resulted in a total outgo of Rs 970 crore for the company.

They also approved the re-appointment of the company's deputy managing director and chief operating officer, Mr S. Gopalakrishnan, for another term of five years. They also approved the re-appointment of directors, Mr Deepak Satwalekar, Prof Marti. G. Subrahmanyam, Mr S. Gopalakrishnan, Mr S.D. Shibulal, Mr T.V. Mohandas Pai, and delisting the company's shares from the Bangalore Stock Exchange.

The shareholders also approved the formation of a new trust for the welfare of the employees and payment of remuneration in the form of commission to non-executive directors.

Addressing shareholders, the Infosys Chairman and Chief Mentor, Mr N.R. Narayana Murthy, said the company had sustained healthy growth during 2003-04 even as most companies in the global market place shrank in revenues.

BPO backlash `abating'

INFOSYS said the backlash against offshore outsourcing, particularly Indian companies had "abated" considerably in the recent times following strong growth posted by the US economy coupled with employment generation.

``Outsourcing is an issue of concern to the US. But if you look at the last three or four months, the sense we get is that the offshore outsourcing debate is abating as the US has created over a million jobs," Mr Nandan Nilekani, Managing Director and Chief Executive Officer, told presspersons after the company's 23rd AGM.

The outcry against outsourcing witnessed last year was primarily due to jobless recovery of the US economy, he added.

On the company's China plans, Mr Nilekani said the company had employed about 30 professionals in its Chinese subsidiary and would ramp up to 200 soon.

When asked about the impact of the TCS public issue, Mr Nilekani said he would only welcome the planned listing.

"I think TCS going public is a great event. It adds to the global pool of Indian companies that are becoming global multinationals," he said.