Around 56.7 lakh shares were bought and sold on Thursday after media reports emerged that promoters, which included the co-founders of the company, were unhappy with Vishal Sikka's tenure extended to 2021.
Infosys shares on Thursday hit a three-week low after a huge block deal was done in the subsidiary market after reports emerged only 23.57% promoter votes were cast in the favour of re-appointing CEO Vishal Sikka.
Around 56.7 lakh equity shares of Infosys have changed hands in six block deals, according to a Bloomberg report. The details of the buyers and sellers have not been reported currently.
The stock fell 3.1% to touch Rs 1,164 a piece intraday, seeing its lowest level since February 29.
At 1207 hours, however, the stock had recovered slightly on the BSE and still down 0.47% or Rs 116.95 at Rs 24,783.68 a piece. At the same time, on the NSE, the shares of the company were trading down 0.40% or Rs 30.35 lower at Rs 7,584 per piece.
This is the third consecutive session where the company's stock has been in the red. It has lost 6.4% of market value since April 4.
A Mint report said on Wednesday, that the promoters including co-founders of Infosys, did not seem happy that the board's decision to grant a two-year extension till 2021 to CEO Vishal Sikka.
According to the report, two Infosys executives had claimed that promoters may have abstained from voting in favour of Sikka's reappointment in an indication of their displeasure at the terms.
The report clarifies that it probably has more to do with the Sikka's compensation than his tenure extension. Sikka was granted a 55% jump in his compensation to $11 million. The report quotes one of the executives saying "it’s more a vote on the higher compensation than the reappointment"
The families of the four Infosys founders -- N R Narayana Murthy, K Dinesh, Nandan M Nilekani, S D Shibulal -- cashed out about $1 billion from the company's stock in December 2014, another Mint report said.
Sikka was appointed as the CEO of the company with effect from August 1, 2014. He's the first non-founder CEO of Infosys.
On March 11, co-founder S Gopalakrishnan sold 5 million shares in the open market. Shibulal and his family members have sold 2.5 million shares at of 1,149.45 a piece, according to the report.
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