Infosys shares drop 1% as CFO resigns, recover

Shares of Infosys fell over 1 per cent in Tuesday's trade after the Bengaluru-based IT giant's chief financial officer Nilanjan Roy, who after serving in this role since 2018, stepped down from his post, unanticipatedly, to pursue personal aspirations. The development raised concerns over the rising top-level exits at Infosys and other largecap IT firms.

Following the development, Infosys shares fell 1.35 per cent to hit a low of Rs 1,468.50 on BSE.  The scrip recovered a bit and was later trading at Rs 1,479.95, still down 0.57 per cent. The fall on the counter, to an extent, was lower than a 2.7 per cent drop in Infosys American Depositary shares (ADRs) overnight.

Foreign brokerage Morgan Stanley has maintained its overweight stance on the stock with a target price of Rs 1,600 per share. The brokerage reportedly said that the CFO resignation was unexpected and could weigh on sentiment  in the light of past senior level exits at the IT firm.  The brokerage, as per ET NOW, though expects the transition to e smooth given that the role has been filled by an internal candidate.

Also read: Infosys appoints Jayesh Sanghrajka as CFO as Nilanjan Roy resigns

Roy's last date with the company would be March 31, 2024, Infosys said. "The company places on record its deep sense of appreciation for the services rendered by him and for his contributions to the company," it said. 

Jayesh Sanghrajka has been appointed as the CFO of the second largest domestic IT firm. He is currently Executive Vice President and Deputy Chief Financial Officer.

"Nilanjan will continue to be with Infosys till March 31st, 2024 as CFO. The board of directors placed on record their deep appreciation for Nilanjan Roy and acknowledged his contribution to the company during his tenure as the CFO," Infosys said.

Sanghrajka has spent over 18 years at Infosys across two stints and has performed various leadership roles. Sanghrajka, Infosys said, comes with over 25 years of work experience and is a Chartered Accountant.

He first worked with Infosys during 2000-07. He joined Infosys again in December 2012 and was later appointed as the Deputy Chief Financial Officer for the Infosys Group in October 2015. Jayesh is presently responsible for various areas of the finance function including investor relations, business finance, corporate finance, treasury and taxHe also oversees the mergers and acquisitions portfolio.

CEO & MD Salil Parekh said: “I am delighted to announce that Jayesh will take over as Chief Financial Officer. As Deputy CFO, he has been leading multiple portfolios in the finance function for several years now and his depth of experience and knowledge will serve us well to take the function to greater heights. I would also like to express my deep appreciation for Nilanjan for ably leading the function over the last five years and wish him the very best for his future endeavors."

 

 

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