Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English

EXIT Poll Results

Detailed Exit Poll Results
News18 » Business
2-min read

Mohandas Pai, Balakrishnan ask Infosys to buy back shares worth Rs 11,000 cr

Infosys shares on Tuesday gained 1.20 per cent to close the day at Rs 3,504.25 compared to its previous closing.

Press Trust Of India

Updated:August 6, 2014, 12:04 AM IST
facebookTwitterskypewhatsapp
Mohandas Pai, Balakrishnan ask Infosys to buy back shares worth Rs 11,000 cr
Infosys shares on Tuesday gained 1.20 per cent to close the day at Rs 3,504.25 compared to its previous closing.

Bangalore: Former Infosys top executives TV Mohandas Pai, V Balakrishnan and DN Prahlad have asked the country's second largest software services firm to buy back shares worth Rs 11,200 crore, saying it will help check the "asymmetry of information" between management and investors.

In a letter to Infosys Board, the three former executives said there is a need "to announce a large and consistent buyback programme to show confidence in the management and the business model".

While both Pai and Balakrishnan have served as Chief Financial Officers at Infosys in the past, Prahlad was a Senior Vice President at the Bangalore-based firm. It could not be immediately ascertained whether the three former executives continue to hold stakes in Infosys.

"Infosys should immediately buy back its shares to the tune of Rs 11,200 crore (which is roughly 40 per cent of the existing cash and cash equivalents)," the letter said. When contacted Balakrishnan confirmed writing the letter,but refused to disclose the contents. Pai declined to comment while Prahlad could not be contacted.

The trio want the buyback at the 52-week high price of Rs 3,850 per share. They also want Infosys announcing an ongoing buyback programme to the extent of 40 per cent of the previous year's net profits on a consistent basis.

Infosys shares on Tuesday gained 1.20 per cent to close the day at Rs 3,504.25 compared to its previous closing.

When contacted, an Infosys spokesperson said "The Infosys board and management receive requests on a variety of subjects from shareholders and investors on an on-going basis.

"These are addressed by the board and the management in due course. In this particular case, we have received this request only from three retail investors."

Should there be any development that will impact Infosys' shareholders, the company will immediately inform regulatory bodies and shareholders on priority, the spokesperson added.

The letter said Infosys believed in increasing shareholders' wealth but in the past three years its stock has heavily underperformed and it has "resulted in a wealth destruction".

"Now, with the management exuding confidence and the Infosys' share price still depressed, there is a need for the Board to announce a large and consistent buyback programme to show confidence in the management and the business model, going forward," it added.

After a series of top level exits, Infosys top management has undergone a change recently, with Vishal Sikka assuming charge of its CEO and MD replacing S D Shibulal who retired. Sikka is the first non-founder to head the company.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results