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Last Updated : Aug 18, 2017 04:10 PM IST | Source: CNBC-TV18

Here's what experts had to say about Vishal Sikka's exit as Infosys MD & CEO

Vishal Sikka resigns as Infosys MD & CEO with immediate effect; he will take on the role of Executive Vice Chairman.

Vishal Sikka resigns as Infosys MD & CEO with immediate effect; he will take on the role of Executive Vice Chairman.

Below are comments from experts & analysts:

TV Mohandas Pai, Former HR Head, Infosys

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"I am surprised that he has resigned but I thought it will happen sometime later because it's not working out."

Sandip Agarwal, Edelweiss Financial Services

"We have to see the details, what they say, if there is a call or something, but as of now it is not like he has left Infosys - that is how it was showing up earlier in media but it is not like that. So I do not think it is a very big change and that is way I would put."

Sanjiv Bhasin, IIFL

"This constant rhetoric was sending the wrong signal. Infosys as a charm or a leading stock in the IT has lost favour, over owned by foreign institutional investors (FIIs), you will only see it unloading. I do know people who are sitting from two years when Infosys was Rs 1,200 and have missed this entire rally. So something had to give and now it is clear that there is going to be uncertainty at the realm and even though Vishal Sikka did humongous amount of reworking, I think this constant bickering was getting too much. So it's negative for the stock and the buyback would be the good time to tender whatever you have, if you are a shareholder."

Inderjeet Bhatia, Macquarie Research

"With Infosys - there are a lot of distractions which are going on on the stock per se. We actually like the stock, we have an outperform rating on that but this whole corporate structure now which is emerging at the top is clearly unstable; two chairman, one vice chairman, looking for MD & CEO does not bode well for the company and the headwinds from the overall macro also not fairly positive for the company."

Dipan Mehta, Member BSE & NSE

"I think it is unfortunate and one more reason for Infosys shareholders to selloff Infosys stock.

I have been negative on the IT space completely because of structural reasons but there is no denying that Vishal Sikka brought in some fresh ideas, new strategy and new direction in a very tough industry and unfortunately his work is only partially done in Infosys. It creates much more uncertainty because it creates that much more difficult for the next CEO to come and pick up the thread, impose his vision on the company and change course midway, if required. So it's a total confusion over there. In buyback whatever investors can offer they should offer but they should take advantage of the floor which gets create because of buyback and exit out of all their holdings."

Ajay Srivastava, CEO, Dimensions Corporate Finance Services

"I think it is very good for the company because now the distraction has become a very personal war of attrition between the CEO and the ex-founders.

Definitely Dr. Sikka was less than transparent in the dealings in terms of not disclosure of the investigation report and once the doubt starts to creep in on the integrity side then everything is lost. Yes, it is a watershed moment, it is a sad moment but it is a right thing for the company for the long-term that this distraction is out of the way.

I am sure they will find a new leader and they will move on and even at some point of time I believe and I have always believed that this is one company which will sooner or later come into a merger play and will merger into one of multinational corporation (MNC) eventually."

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First Published on Aug 18, 2017 11:00 am
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