In recent times, there has been a significant decline in the stakes of the Murthy family in Infosys, the Bengaluru-based IT giant. Rohan Murthy’s stake in the company has fallen from Rs 8,444.47 crore to Rs 7,600 crore, while Akshata Murty’s stake has slipped from Rs 5,409.58 crore to Rs 4,868.66 crore. Sudha N Murthy and Narayana Murthy have also seen their stakes decline by Rs 480 crore and Rs 231.12 crore, respectively. The decline in the stakes of the Murthy family in Infosys is a matter of concern not only for the family but also for the company and its investors. In this article, we will explore the reasons behind the decline in the stakes of the Murthy family and its implications for Infosys and its stakeholders.
Reasons for the Decline in the Stakes of the Murthy Family
The decline in the stakes of the Murthy family can be attributed to several factors. One of the main reasons is the fall in the stock price of Infosys. The stock price has been under pressure due to weak guidance for FY24 and the narrowing growth differential with TCS. Several brokerages have cut their target prices for the stock, leading to a decline in market capitalization.
The decline in the stock price has also led to a loss in the value of the stakes held by institutions and individuals. SBI Mutual Fund and ICICI Prudential MF have lost Rs 2,239.55 crore and Rs 1,226.79 crore, respectively, on their investments in Infosys. Sudha Gopalkirshnan has also lost Rs 1,324 crore on her 2.61 per cent stake in the company.
Another reason for the decline in the stakes of the Murthy family is the lower-than-expected growth rate of Infosys. The company now requires a 1.7 per cent to 2.8 per cent compounded quarterly growth rate over the next four quarters to meet its guidance, which appears to be a tall ask. This has led to a revision in target prices and valuations by several brokerages.
Implications for Infosys and its Stakeholders
The decline in the stakes of the Murthy family has several implications for Infosys and its stakeholders. One of the main implications is the impact on the image and reputation of the company. Infosys has been known for its strong leadership and governance, and the decline in the stakes of the Murthy family may raise questions about the future direction of the company.
The decline in the stakes may also have implications for the shareholders of Infosys. The decline in the stock price has led to a loss in value for the investors, and the revision in target prices and valuations may lead to a further decline in the stock price.
The decline in the stakes of family in Infosys is a matter of concern, the company, and its stakeholders. The reasons behind the decline are multifaceted, and the implications are significant. It is essential for Infosys to address the issues and challenges it faces to restore the confidence of its stakeholders.