Narayana Murthy to address investors tomorrow to take on Infosys board: Report

Narayana Murthy is all set to address Infosys shareholders tomorrow to explain his stand on the exit of Vishal Sikka, according to reports.

71-year-old Murthy is expected to speak on corporate governance and how the dilution of the values of the company he established is bad for Infosys, according to one report. He also expected to take questions regarding Sikka's exit and other allegations leveled against him.

The Infosys board has publicly slammed Murthy, holding him responsible for Sikka's exit. An ex-board member has written a public letter asking Murthy to stay away from Infosys' affairs.


While Sikka did not name Murthy for his exit, the Board of the USD 10 billion firm blamed the founder for "continuous assault" through "factually inaccurate" and "already-disproved rumours" for the resignation of the CEO.

Murthy, however, maintained that his only concerns are the lapses in corporate governance standards, something that Infosys was admired for at one point.

The public battle between Murthy and Infosys board has hit investors' sentiment, with the value of shares of the IT firm falling over 5 percent since Sikka's exit.

The company has lost nearly Rs 34,000 crore in market capitalisation as investors are uncertain about who will be elevated to the top job and troubled by the acrimonious fallout between the board of the 36-year-old company and its iconic founder NR Narayana Murthy.

A Rs 13,000-crore buyback offer, at Rs 1,150 apiece, by Infosys also seems to have failed with brokerage CLSA estimating the acceptance ratio is likely to be only about 5%.