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Vishal Sikka quits as Infosys CEO, Board attacks Narayana Murthy

19 August 2017
Vishal Sikka quits as Infosys CEO, Board attacks Narayana Murthy

As of now, UB Pravin Rao will serve as interim replacement for Sikka. I have wrestled the pros and cons, the issues and the counterbalancing arguments.

"The Board understands and acknowledges Sikka's reasons for resigning and regrets his decision". "While in near term it's a setback for the company, but given the strength of the board of the company, we believe that the company will be overcome the setback", Sarabjit Kour Nangra of Angel Broking said.

"As you know I started three years ago on this journey". Infosys has been grappling with issues like crackdown on H1-B visas as profits come under pressure since the United States remains a significant market for the company.

At a hastily arranged press conference at the Infosys campus which Mr Sikka said that it was a "blue and sad day".

"It is below my dignity to respond to such baseless insinuations".

Co-chairman Ravi Venkatesan said the board had accepted Sikka's reasons for stepping down as the CEO. Infosys, along with 48 other companies had received 2 stars. "They have built the company, they have sacrificed for it", he said.

Despite the progress, Sikka said his position has now become untenable.

Dec 2014: Some of Infosys's founders - N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal and K. Dinesh - sell shares worth $1.1 billion in the company, cashing in on a more than 20 percent gain in the stock since Sikka's appointment.

Among the frequent disagreements with promoters, Vishal Sikka has resigned from the post of MD and CEO of Infosys.

Accepting the resignation of Vishal Sikka with immediate effect, the company has promoted him as Executive Vice Chairman.

"Murthy's letter contains factual inaccuracies, already disproved rumours, and statements extracted out of context from his conversations with Board members", Infosys said. "I will reply to these allegations in the right manner and in the right forum and at the appropriate time", the media quoted Murthy as saying on Friday.

In June, the company informed The U.S. Securities and Exchange Commission that it identified "activist shareholders" as a potential risk to the company's execution of strategic plans and warned investors that uncertainties could impact Infosys' share price, its clientele and investor sentiment.

The sharp plunge in the stock wiped out Rs 24,838.92 crore from its market valuation during the late afternoon trade.