Infosys stock reacts to Balakrishnan's exit

Personal Finance

oi-Sunil

By Sunil Fernandes

Updated: Monday, December 23, 2013, 9:52 [IST]

The Infosys stock was among the top losers in trade today, following the exit of V Balakrishnan from the company. The stock was trading lower by 1.5 per cent at Rs 3500 on the National Stock Exchange. Read more on Balakrishnan's exit here

In what came as a shock to the industry, V Balakrishnan quit Infosys, making it a high profile exit from the company. This is the eighth top executive to quit the company since Narayana Murthy tookover as Chairman.

In a statement, Chairman Narayana Murthy said it was "difficult to imagine Infosys without Bala's passion and commitment." The company, however, did announce that Kris Gopalakrishnan would be heading the BPO business in the interim while BG Srinivas would take over as Lodestone chairman.

Analysts say that Balakrishnan's exit will hurt the company as he was heading the BPO business and has been with Infosys for almost 22 years. In fact, it was speculated that he would takeover from Shibulal as the Chief Executive Officer of the company.

However, Balakrishnan did not quit Infosys due to bickering and is quoted as saying "I wanted to do something outside Infosys".

He is now set to start a private equity firm and had sold some stake in Infosys earlier.

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