News: Infosys stock falls 3% after CFO Ranganath’s exit

C-Suite

Infosys stock falls 3% after CFO Ranganath’s exit

The market capitalization of the IT major eroded by Rs10,079.73 Cr on the latest exit of CFO M D Ranganath.
Infosys stock falls 3% after CFO Ranganath’s exit

The exit of CFO M D Ranganath from IT major Infosys led to a 3% fall in the stock price of the company yesterday, eroding Rs 10,079.73 Cr from the company’s market capitalization.

Ranganath, fondly known as Ranga, who has been working with Infosys for close to two decades, resigned in a surprise move that again raised questions about stability at the country’s second largest IT services firm.

The stock opened on a weak note at Rs 1,388.70 on BSE, and later tanked 4.03% to touch an intra-day low of Rs 1,373.55. At the day’s close, it was quoted at Rs1,385.20, with the market capitalization of the company eroded by Rs 10,079.73 Cr to Rs 3,02,545.31 crore at the close.

A similar pattern followed on NSE as well, where the stock opened at Rs 1,388.00, then fell 3.97% to a low of Rs 1,373.50 and finally settled at Rs 1,388.20, down 2.95%.

Ranganath took over the CFO role in 2015 after the exit of Rajiv Bansal. He is leaving the company to “pursue professional opportunities in new areas” and will continue in his current position till 16 November 2018, the company said in a statement.

The board, which accepted the resignation at its meeting on 18 August, said it will immediately commence the search for Ranganath’s successor.

However his exit continues the exodus of top-level brass from the company A year after former CEO Vishal Sikka exited and eight months after Salil Parekh took over the role, the Indian multinational corporation still seems to be struggling with attrition and instability in the leadership roles. In recent times, it has also seen the exit of Sangita Singh, Executive Vice President, Healthcare and Life Sciences and Nitesh Banga, Senior VP and Global Head of Manufacturing and Edge products.

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Topics: C-Suite, #Corporate

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