A quick backdrop: Shibulal along with NR Narayana Murthy and five others founded Infosys in 1981. Shibulal served as the chief executive officer and managing director of Infosys from 2011-2014. Prior to becoming CEO and MD, he served as the chief operating officer of the IT Giant in 2007-11. Infosys Limited, is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. The company is headquartered in Bangalore, Karnataka, India. Infosys is the second-largest Indian IT company after Tata Consultancy Services by 2017 revenue figures and the 596th largest public company in the world based on revenue. On 29 March 2019, its market capitalisation was $46.52 billion.
Co-founder S.D. Shibulal and Family
Infosys Ltd co-founder S.D. Shibulal and family have sold 8.5 million shares or 0.20% of their paid-up share capital in the company, during 22– 24 July. The sale was executed by Citigroup Global Markets India Pvt. Ltd as the sole broker. The names of the family members selling stake is unknown. Data showed SD Shibulal held 17,65,768 shares or 0.4 per cent stake in Infosys as of June 30. Kumari Shibulal, his wife, held another 0.25 per cent stake, son Shreyas Shibulal 0.66 percent and daughter Shruti Shibulal owned 0.06 per cent stake at the end of June quarter. Grandson Milan owned 0.36 percent of Infosys, son-in law Gaurav Manchanda (0.36 per cent) and daughter-in-law Bhairavi Madhusudan Shibulal (0.15 per cent), data showed.
But why an abrupt offload of the company’s stock even if it means a tiny portion of their overall ownership. There’s nothing to worry about.
Why were the shares sold?
“Proceeds from the partial stake monetization will be utilized for a combination of philanthropic and investment activities,” Shibulal’s family office said in a statement. The Shibulal Family Philanthropic Initiatives has been involved in various social initiatives especially in the education, social welfare, and sustainable development space since 2005-06. Currently, Shubilal also invests in technology startups through Axilor Ventures where Infosys co-founder Kris Gopalakrishnan is the chairman.
Infosys’ recent-past’s performance
Last week, Infosys posted a 11.5 per cent year-on-year (YoY) growth in net profit at Rs 4,233 crore for theJune quarter compared with Rs 3,798 crore in the corresponding quarter last year. The numbers beat ET NOW poll projection of Rs 3,820 crore by a wide margin.
Consolidated revenue of the company increased 8.5 per cent YoY to Rs 23,665 crore in Q1FY21, over Rs 21,803 crore in the same period last year. The IT major has projected FY21 revenue growth guidance in the 0-2 percent range in constant currency terms.
Also Read : News Highlights From July 2020
Leave a Reply
You must be logged in to post a comment.