India's Infosys denies promoters selling stake in company

India’s Infosys denies promoters selling stake in company

The logo of Infosys is pictured inside the company's headquarters in Bengaluru© REUTERS/Abhishek N. Chinnappa The logo of Infosys is pictured inside the company’s headquarters in Bengaluru

Infosys Ltd on Friday denied a media report that the founders of India’s second-biggest software services exporter were looking to sell their entire 12.75 percent stake in the company.

Shares in Infosys Ltd fell as much as 3.5 percent to their lowest in over a month on Friday.

The Times of India newspaper on Friday had reported the Infosys founders were exploring such a sale, citing people familiar with the developments, although it carried a denial of such a move by one of the firm’s founders, Narayana Murthy.

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The newspaper, however, quoted Infosys founder Narayana Murthy denying such a move. Mr Murthy, along with his family, is the largest shareholder in Infosys with a 3.44 percent stake.

A statement from Infosys said, “This speculation has already been categorically denied by the promoters. The company further reiterates that it has no information on any such development.”

But shares of the software company fell as much as 3.5 percent to their lowest since May 5.

Promoters were not immediately reachable.

In recent months, the founders and the board of India’s second-largest exporter of software services have clashed over governance issues, with Mr Murthy and others deeply critical of pay hikes and severance packages for senior executives. The Infosys board chose to back CEO Vishal Sikka. Just days ago, Mr Murthy said that to guard against lay-offs, top executives should take pay cuts.

Earlier this year, Infosys’ founders had expressed concerns about the manner in which the company was being run by its current management and board.

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