Rival parties in the war in Infosys are trying to marshal support for themselves. Infosys co-founder N R Narayana Murthy has organised a conference call with the investor community on Wednesday in what appears to be an effort to explain his position.
Many in the community see him as responsible for CEO Vishal Sikka's resignation and the subsequent collapse in the company share price that wiped out about Rs 34,000 crore from its market capitalisation.
On the other side, Infosys co-chairman Ravi Venkatesan —who is part of the board against which Murthy has levelled charges of poor governance — met finance minister Arun Jaitley on Tuesday and apprised him of the developments in the firm and the steps being taken to keep shareholders informed.
The government is said to be concerned about the fight in what is one of India's most high-profile companies globally. On Tuesday, Sebi chairman Ajay Tyagi said the regulator is keeping a watch on the Infosys stock's price. Murthy's conference, being hosted by international financial services company Investec, is expected to draw representatives of a number of domestic and foreign investors.
He's expected to face an irate set of investors seeking clarity on why he is doing what he is doing. The tussle has been going on for over a year now, and both Sikka and the board have said that it has seriously impacted operations of the company.
LIC of India, the largest institutional shareholder in Infosys holding a 7.03 per cent stake, is expected to participate in the call, sources said. ICICI Prudential Value Discovery Fund and ICICI Prudential Life Insurance, which hold 1.49 per cent and 1.33 per cent stakes respectively, and representatives of foreign investors Oppenheimer, Abu Dhabi Investment Authority (ADIA) and Government of Singapore, which hold 2.16 per cent, 1.32 per cent and 2.11 per cent respectively, are also expected to be on the call. Murthy, sources said, had recently spoken to investor Aberdeen.
On Friday, when the board launched a scathing attack on him, Murthy had said he would respond to the board's allegations at an appropriate time and on the right platform. It is to be seen whether the Wednesday conference call is that "time" and "platform."
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