Infosys shares jump as Narayana Murthy returns

Co-founder Narayana Murthy returns to Infosys causing the shares of the company to jump as much as 7per cent on Bombay Stock Exchange.

10:56 05 June 2013

Infosys shares jumped to as much as 7per cent on Monday after it was revealed that co-founder Narayana Murthy returned to the company as chairman. He replaces KV Kamath who will become lead independent director.

 

Infosys is India’s second-largest software outsourcer by revenue. Its growth rate was slow down for the past years due to weaker global demand. 

 

Narayana Murthy, who took charge of the firm from June 1st, will stay in position for five years. He said: “This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child.”

 

“Therefore, I have put aside my plans-in-progress and accepted this responsibility... I intend to do my best to add value to the company in this challenging situation.”

 

KV Kamath, the current chairman of the firm's board, is convinced that Mr Narayana Murthy’s return is good for the company.

 

He said: Mr Murthy’s “entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time.”