Share sale by Infosys founders could see Narayana Murthy, Nandan Nilekani come together for philanthropy

BANGALORE/MUMBAI: The co-founders of Infosys have sold about 33 million shares for about Rs 6,500 crores, in a move that could see them coming together to set up a philanthropic venture.

Narayana Murthy and Nandan Nilekani sold about 12.0 million shares, according to Deutsche Bank, which was the book-running agent on the sale. K Dinesh sold about 6.2 million shares. K Shibulal sold 2.4 million shares.

“At this point we do not have any such plans (to come together to form a philanthropic venture). But in the past, like in the case of Infosys foundation and several other activities, we have participated together. It always a pleasure to work with these wonderful colleagues,” Narayana Murthy, co-founder of Infosys, told ET.

Murthy added that they were looking at ‘various interesting opportunities and ideas to add value to the country’ but that it would be premature to comment at this point.

Nandan Nilekani said the sale was not a signal of the founders’ faith in the company.

“We have sold a part of our stake for personal reasons and to continue our philanthropic efforts. Even after this sale our family continues to be one of the largest retail shareholders. We have great confidence in the future of Infosys and its leadership team,” Nilekani told ET.

Shares of Infosys dropped 5% on news of the share divestment, but analysts say that the move is an over-reaction.

“A share sale by these guys should not be looked at as a negative as they are not financial investors. They are looking at selling for their own purposes, which could see them coming together for a philanthropic venture,” a Mumbai-based analyst, at a foreign brokerage, said.

In October, the Infosys founders informed the company that they wish to be considered as investors and not promoters.