Narayana Murthy, co-founders to sell entire stake in Infosys?

Narayana Murthy was particularly upset with the huge severance package offered to Infosys Former CFO Rajiv Bansal.

On condition of anonymity, a top banker told ET that the stake sale is likely to take place via block deals on the stock market and in tranches.

"A single, block deal is thought to be unlikely. Large private equity or sovereign wealth funds (SWFs) won't be enthused to write  USD 4-5 billion cheques to be minority investors without any rights," the banker told ET.

Responding to ET's query, Murthy denied such talks of a stake sale and said, " It is not true at all," whereas, Nandan Nilekani said he refused to make any comments.

Infosys co-founders -- Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, SD Shibulal and K Dinesh -- hold neither executive nor non-executive roles in the company anymore.

This moves comes at a time when Infosys, along with the entire IT sector, is under pressure due to the rise of automation and geopolitical uncertainties. In the past few trading sessions, the stock price of Infosys has seen a correction and a further stake sale could lead to an overhang for the stock price.

“Infosys would like to clarify reports in the media speculating on plans of stake sale by the promoters. This speculation has already been categorically denied by the promoters. The company further reiterates that it has no information on any such development," the company said in a statement.

"We would like to appeal to the media not to fuel such speculative stories as they are likely to harm the interests of the company and all its stakeholders,” the statement further adds.