Business Today

Anant Gupta is most likely to replace current CEO Vineet Nayar

The market is expecting a revamp of the management with an announcement expected by July or August with Anant Gupta, president, infrastructure services division, being the most likely candidate to step into Nayar's shoes.

Mail Today Bureau   Mumbai     Last Updated: June 13, 2012  | 10:05 IST

The market is expecting change in the management of HCL Technologies (HCLT) after its vice-chairman and chief executive officer (CEO) Vineet Nayar sold his entire stake in the company last week. The market is expecting a revamp of the management with an announcement expected by July or August with Anant Gupta, president, infrastructure services division, being the most likely candidate to step into Nayar's shoes.

Nayar had sold 2.7 million equity shares of Rs 2 each, or 0.39 per cent stake, in the information technology services provider for Rs 133 crore on June 7.

"We believe there could be a change in management responsibilities at HCL Technologies in the near future. The change could be announced as early as July or August when the company announces its full year results," Morgan Stanley Research said in a note to its clients.

The research wing of the global investment banking firm also said it expects a significant change in responsibilities at the senior level with Gupta taking up a bigger role in the organisation.

According to Morgan Stanley Research, Nayar may delegate some of his key responsibilities to Gupta. It also believes that Nayar may not be as active in reviewing business plans for the coming year as in the past.

"A CEO periodically selling a part of his stake in the company is not uncommon. That said, Nayar selling his stake is surprising," Morgan Stanley Research said in the note.

Earlier, Nayar had indicated that any of the top three business leaders at HCLT could replace him. "Managing a possible transition will be critical for HCL Technologies' continued strong performance. Though TCS managed the transition seamlessly, Infosys recently indicated that a change in management led to muted revenue growth performance and diverted management bandwidth more than anticipated," Morgan Stanley added.

On Tuesday, the information technology firm's share price rose by 0.50 per cent at Rs 484.75 after falling over two per cent during the previous trading session.

The markets also witnessed block deals in HCL Technologies. HCLT had said last week that Nayar has been involved in philanthropic causes through his own non-governmental orgainsation Sampark, which he established in 2004.

Nayar had also transferred part of his investments in HCLT shares to two trusts. "These trusts have now sold shares of HCL Technologies along with some shares which Vineet held in his name. The proceeds from sale of these shares, post tax, would go as endowments to the academic institutions he has attended," it said.

Earlier, in 2009, Nayar had sold 10 lakh shares in the open market for Rs 31.40 crore. Nayar was appointed president of HCLT in April 2005 by the company's founder Shiv Nadar. He went on to reshape the organisation with his 'Employee first, customer second' philosophy.

Nayar was later appointed as CEO of the company in October 2007. On October 20, 2010, Nayar was named vice-Chairman of HCLT.

Courtesy: Mail Today 

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close