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Infosys rose 36% CAGR under Nilekani's stint in 2002-07; Is the golden period back?

Equity Tips
The efforts of financial institutions and fund managers by writing to the Infosys Board to induct Co-founder Nandan Nilekani into the company’s Board has not gone in vain. Nandan Nilekani was named Infosys Chairman on Thursday after R Seshasayee and co-chair Ravi Venkatesan quit.

Nilekani is not only the Co-founder of Infosys but he was also held in high esteem by Infosys clients and investors. The company returned 36 percent CAGR in his stint in the corner office (2002-07).

More importantly, he did not hang his gloves but he went to head the Unique Identification Authority of India, at the invitation of the then PM. His has been the biggest social project on the planet.

So, Nandan is always battle-ready and has the experience and the foresight to know what’s coming next. This is a good move by the institutions.

Institutions needed to intervene for the protection of their own money and also for a larger cause of the small investors, who have been led the garden path by Sikka playing the USD 20 billion by 2020 story on his flute.

The appointment of Nilekani as the Chairman will only mark the beginning of the cleansing of the Infosys Board. The audacity with which the board bombarded Murthy and held him solely responsible for Sikka’s exit will long be remembered as the worst piece of communication by the Board of a large listed entity.

While the Tatas were the pioneers of good corporate governance and employee empathy, Narayan Murthy took the good corporate governance in India to the next level.

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

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