Infosys back in recokoning

Infosys, as expected, is amongst the top five gainers on the BSE the moment it opened for trading. The stock which was beaten down last week is back in the reckoning among bargain hunters. The stock rose 4.5% to Rs.953 levels.

The market is happy that the ongoing storm at Infosys has found an anchor in Nandan Nilekani now at the helm. A co-founder, the belief is that he will now nurture the company back into health and help clean up some of its tarnished image due to this Board room battle, raising serious corporate governance issues.

He has announced four major decisions – 1)look for a new leader for which it has appointed recruitment firm Egon Zehnder to work with its Nominations and Remunerations Committee to review and identify the right candidate to be the next CEO and MD. 2) Work on a new business strategy which will be presented to the board in October. 3) Take appropriate action based on investigation reports on the Panaya acquisition. 4) A new governance structure will also be in place by October.