Infosys dips 1% as founders raise governance concerns with board

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Infosys shares fell more than 1 percent Wednesday on governance concerns raised by founders of the company.

Founders NR Narayana Murthy, Kris Gopalakrishnan, and Nandan Nilekani among others are learnt to have raised concerns over the governance of the company, sources told CNBC-TV18 on Tuesday.

Factors that have irked the founders and others at the second largest IT firm in the country are compensation of Chief Executive Vishal Sikka, severance package given to former Chief Financial Officer Rajiv Bansal, and General Counsel David Kennedy and appointment of independent director Punita Sinha (wife of Union Minister Jayant Sinha).

Shriram Subramanian, Founder and Managing Director of proxy advisory firm InGovern also raised objection on the appointment of DN Prahlad on the board as he is non-independent and NR Narayana Murthy's relative, a media report said.

Meanwhile, yesterday, there was a buzz about buyback of shares that is likely to be considered by the board of directors soon.

Sources told CNBC-TV18 that the management of Infosys may consider the option of a share buyback and the size of share buyback could be a mammoth Rs 12,000 crore.

Currently, Infosys has about Rs 38,000 crore cash on its books.

The company, in its clarification note to exchanges, said its policy was not to comment on rumors or speculations. Further, the company has always complied with its reportable obligations under SEBI's Listing Obligations and Disclosure Requirements norms in a timely manner and will continue to do so, it said.

At 10:38 hours IST, the stock was quoting at Rs 935.00, down Rs 9.75, or 1.03 percent on the BSE.