Stocks

Sikka effect: Infosys crashes to 52-week low; m-cap erodes by Rs 24,839 cr

PTI New Delhi | Updated on January 27, 2018 Published on August 18, 2017

infosys

Shares of Infosys today slumped over 13 per cent, eroding Rs 24,839 crore from its market valuation, after Vishal Sikka, the first non-founder CEO of the company, resigned.

The IT major’s scrip plummeted 13.39 per cent to Rs 884.40 — its 52-week low level — on the BSE. On the NSE, the stock crashed 13.38 per cent to hit its one-year low of Rs 884.20.

The company shares closed down by 9.6 per cent at Rs 923.10 on the BSE. On the NSE, the stock closed down by 9.57 per cent at Rs 923.15.

The stock was the worst performer among the blue-chips on both the key indices.

The sharp plunge in the stock wiped out Rs 24,838.92 crore from its market valuation during the late afternoon trade.

Sikka resigned amid heightened acrimony between the board and the high-profile founders led by NR Narayana Murthy, saying he faced “false, baseless, malicious and increasingly personal attacks“.

Pravin Rao, currently the chief operating officer, will be the interim CEO, India’s second largest software services exporter said in a statement.

Sikka, 50, a former German IT major SAP executive, who was roped in as CEO and MD of the $10-billion revenue company three years ago, has been appointed as the Executive Vice-Chairman until a new MD and CEO is hired.

Published on August 18, 2017

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