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Srinivas exit hits Infy hard

Mumbai, May 29: Infosys shares today crashed around 8 per cent on the BSE following the surprise resignation of B.G. Srinivas, considered to be a front-runner to the chief executive’s post.

On the BSE, the scrip ended at Rs 2,924.30, a drop of 7.81 per cent, or Rs 247.90, over the previous close.

On the NSE, the stock tumbled 3.43 per cent to close at Rs 2,921.30.

The scrip was the top loser among the blue-chips on both the Sensex and Nifty and the fall eroded its market valuation by Rs 14,000 crore to Rs 1,67,923.88 crore.

Market circles said the selling pressure in the counter came on investor apprehension that the exodus of the senior management could create a leadership vacuum and the company’s performance could also be hit.

Analysts maintain that Infosys should expedite its search for the next CEO.

S.D. Shibulal, managing director and CEO, will step down in January next year.

Meanwhile, Srinivas will join Hong Kong-based diversified group PCCW as group managing director in July.

Srinivas was the tenth top-level exit in the country’s second largest IT services entity over the past one year.

S.D. Shibulal, managing director and CEO, will step down in January next year.

The expectation is that an external candidate is likely to be appointed to the post, which will be a break from its tradition.

Infosys is now involved in the process of selecting its next CEO.

 
 
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