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Infosys slumps 9.6% at BSE, ends at 52-month low after Vishal Sikka's resignation

Horror day for Infosys in the markets.

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Vishal Sikka's shock resignation as Infosys CEO expectedly lead to a massive fall in company's share price on Friday.  Infosys' share sank by 9.6% to end at Rs 923.10. It is a 52 month low. 

In intra-day trading, the stock was down by over 13%, wiping off  Rs 24,839 crore from its market valuation, after Vishal Sikka, the first non-founder CEO of the company, resigned.

After three straight sessions of gains, the Sensex opened lower and dropped further before ending down 270.78 points, or 0.85%, at 31,524.68. It had rallied 581.87 points in the previous three sessions.The 50-share Nifty too closed lower 66.75 points, or 0.67%, at 9,837.40. 

Vishal Sikka, the first non- founder CEO of Infosys, resigned amid heightened acrimony between the board and the high-profile founders led by NR Narayana Murthy, saying he faced 'false, baseless, malicious and increasingly personal attacks'.

"NR Narayana Murthy's continuous assault, including the latest letter, is the primary reason why Vishal Sikka resigned," reported PTI quoting Infosys. In a letter to the Infosys board, Sikka said the 'continuous stream of distractions and disruptions' that became increasingly personal and negative, forcing him to quit. Reacting to the allegations, Murthy said, "I will reply in right manner, at right forum and at an appropriate time."

"Anguished by allegations, tone and tenor of statements made by Infosys board, below my dignity to respond to baseless insinuations." Meanwhile, Infosys said that currently, has no intention of asking NR Narayana Murthy to play a formal role in company's governance. Reacting to Sikka's resignation, the board said it is 'profoundly distressed' by the unfounded personal attacks on the members of the management team.

With PTI inputs

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