One of India's tech darlings, Infosys, could fall out of favor with investors after its chief executive officer resigned unexpectedly on Friday following a clash between the company's founder and the board of directors.
Vishal Sikka announced his departure in an email to his employees — which he subsequently uploaded onto his blog — where he said his decision was influenced by "distractions, the very public noise around us," that had created an "untenable atmosphere."
Investors were quick to react: On Friday, the stock price fell 9.6 percent on the back of Sikka's resignation. On Monday, shares fell another 5.4 percent, and Reuters said the two-day spiral wiped about $5.2 billion in market value. Even a share buyback of up to 130 billion rupees ($2 billion) at a premium of 1,150 rupees per share, announced Saturday, failed to spur optimism among investors.
The downward slide appeared to have halted momentarily on Tuesday, when shares closed near flat at 875.40 rupees, after being down more than 0.6 percent in morning trade.
On Tuesday, India media reported that Infosys co-chairman Ravi Venkatesan met with Finance Minister Arun Jaitley to brief him about the developments at the company.