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infosys crisis


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infosys is the 2nd largest indian i.t company.if something happens to infosys affects indian affects indian affects share market.when vishal sikka resign as a ceo level from infosys what happens inside and outside of the infosys .look at this slides you will know everything about me and follow me.

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infosys crisis

  1. 1. Why we have selected?  Infosys more commonly referred as IT giant in India is a prime “economic backbone of India” & has veto power to move government.  Infosys is the second largest Indian IT firm by 2016 revenue. On January 12,2017, its market capitalisation was $ 34.38 billion.  Directly Contributes GDP about 8.36%. This indicates that out of total country's turnover, 8.36% is in the real estate turnover. Through Sikka's resign it affected on stakeholder & people were moving back.  Indirect contribution to GDP, was the real estate money goes to multiple outlets & circulates multiple times.
  2. 2. Brief about company  It is IT services & IT consulting. It has its headquarters in Bengaluru, India. It served worldwide.  Trade as: BSE, NSE, CNX Nifty constituent.  Established: 7 July 1981, 36 years ago  Revenue: US$10.208 billion(2017)  Operating income: US $ 2.520 billion  Profit: US $ 2.140 billion  Total assets & equity: US$ 12.854 billion & US$ 10.637 billion  Number of employees: 2,00,364(march17)
  3. 3. What is Corporate governance? Corporate governance is the system of rules, practices and processes by which a company is directed and controlled Clash in culture at Infosys, ,frugal salary ,key low lifestyle vs globally benchmark compansation severance structure has leads to disturbance in the company Lapses of corporate governance in respect to the leadership issue in the company
  4. 4. Problems faced by company due to exit of Vishal Sikka  Sikka’s resignation has left the company with another messy problem of finding someone willing to replace him.  The company's last CEO hunt in 2014 was a major challenge with Sikka being the first chief appointed from outside the group of founders.  Though Sikka has led efforts to diversify Infosys into more lucrative new areas, like cloud, automation & Artificial intelligence.  It happened also due to Sikka asked raised in compensation 3times more to $7 from $11 million in 2016.  Sudden resignation fall more than 12% shares.
  5. 5. Graphical data after effects
  6. 6. Pros & Cons by the company as per Economic prospective  Company faces recruitment headache.  Inflexion point in India for corporate governance.  Brokerage downgrade up to price 850 from 940.  Lost nearly rupees 34000 crore in market capitalisation.  Negative publicity created due to this crises.  20% stock fallen down.  Company purchase 11.3 crore share back from investors at rupees 1,150 per share it was planned up to 13000 crore to reward CEO & secure reputation in market of company.  Offer price nearly 25% in premium & closing price of rupees 923 on BSE.  It reflects 9.6% crash in its shares price, & 5% acceptance ratio.  For retailers the acceptance ratio is 59%.
  7. 7. New strategies made after Nilekhani Returns as CEO  Immediate goal is to bring stability & calmness to the organisation.  Focus on the search for a new CEO.  Look at the long-term corporate governance structure.  Focus on the boards relationship with murthy.  The approach on recent investigation.  2% stock raisin it increase from rupees 940-950.
  8. 8. THANK YOU! Prepared by: Kushal shah Saurav Pandey Urvi shah