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Infosys Stocks Plummet After CEO And MD Vishal Sikka Resigns

News World India | 0
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| August 18 , 2017 , 16:50 IST

As the Managing Director (MD) and Chief Executive Officer (CEO) of software major Infosys, Vishal Sikka resigns, the stocks of global software company plunged over eight per cent by noon.

At 12.30 p.m., the IT major's scrip on the BSE dipped by 8.46 per cent to trade at Rs 934.75 per share.

The plunge in the stocks of the company led the overall S&P BSE IT index to decline by 289.84 points or 2.77 per cent.

Infosys on Friday announced that Sikka has resigned. "The Board of Directors has accepted the resignation of Vishal Sikka ... with immediate effect at its meeting held on Friday," said the IT major in a statement.

ALSO READ: Vishal Sikka Resigns As MD And CEO Of Infosys, Pravin Rao Appointed Interim CEO

After his resignation, Sikka had written a letter saying, "After much reflection, I have concluded that it is indeed time for me to leave my current positions as MD and CEO, and I have communicated my resignation to Sesh."

"I will be working closely with Sesh, Ravi, Pravin, with all of you, and the senior management team to plan out the details and the timelines to ensure a smooth transition and in the meantime, continue our work without disruption, and ensuring that we protect our company, the employees, the clients, and the interests of every shareholder. You can count on my commitment to this," he said in the letter.

The Board has appointed 50-year-old Sikka as Executive Vice-Chairman who will hold office until the new CEO and MD takes charge by March 31, 2018. The board has already appointed Pravin Rao as the interim CEO of the company.