Sikka Welcomes Share Sale by Infosys Founders

File photo of Infosys CEO Vishal Sikka

New Delhi: As four founder families sold part of their Infosys holdings on Monday, Vishal Sikka, chief executive of India's second largest IT outsourcer, said monetization of shares for philanthropic and entrepreneurship purposes was in line with the company's values.

"As I have always said, the founders have left an indelible legacy and culture in this iconic company and I respect and trust their decision of contributing towards philanthropic activities and entrepreneurship and other initiatives...So, in that sense again this action by them is aligned with the company's values," Mr Sikka said in a statement.

"In fact, contributing to the greater good is something close to the company's heart, I am looking forward to further strengthening and reinforcing this area."

Mr Sikka, the first outsider CEO of Infosys, noted that the four co-founders continue to be among the largest retail shareholders in the company and they have reiterated their commitment to the future of the company and reinforced their belief in and support of its leadership.

On Monday, families of four Infosys co-founders, including Narayana Murthy and Nandan Nilekani, sold shares worth over $1 billion (Rs 6,484 crore) - within months of all original promoters exiting the management and Mr Sikka becoming the first outsider CEO.

While these four co-founders, which also include former CEO S D Shibulal and K Dinesh, have monetized only part of their holdings - for entrepreneurship and philanthropic activities - their action led to a sharp plunge of about 5 per cent in the IT heavyweight's share price eroding almost $2 billion from the company's market capitalisation.

A total of 3.26 crore shares, accounting for an over 5.5 per cent stake in the company, were sold through multiple deals by Mr Murthy, Mrm Nilekani, Mr Dinesh and some of their family members, as well as wife of Mr Shibulal.

Infosys, which currently commands a market value of about Rs 2.25 lakh crore, was founded by seven engineers, including these four, by pooling together $250 in 1981, while all the promoters together held a 15.92 per cent stake at the end of last quarter.