Infosys shares plunge, Narayana Murthy’s family loses ₹1,850 crore

Andrew Dubbs
2 Min Read
infosys shares plunge, narayana murthy's family loses ₹1,850 crore

Infosys co-founder Narayana Murthy and his family experienced a significant financial blow as the company’s shares plummeted nearly 6% in a single trading session last Friday. The steep decline erased Rs 1,850 crore from the Murthy family’s wealth, as they collectively own a 4.02% stake in the IT giant. Narayana Murthy holds a 0.40% stake in Infosys, while his wife, Sudha Murty, owns 0.92%.

Murthy family’s financial setback

Their children, Rohan Murty and Akshata Murty, the wife of former UK Prime Minister Rishi Sunak, hold 1.62% and 1.04% stakes, respectively. Murthy’s grandson, Ekagrah Rohan Murty, has a minimal 0.04% stake in the company. The sharp drop in Infosys shares came despite the company reporting an 11% year-on-year growth in consolidated net profit, reaching Rs 6,806 crore for the October-December quarter.

Revenue from operations also rose by 8% year-on-year to Rs 41,764 crore. However, the results failed to boost investor sentiment on D-Street. However, the results failed to boost investor sentiment on D-Street.

Infosys

Analysts suggest that while Infosys’ Q3 earnings exceeded market expectations, its revised revenue growth guidance, signaling a potentially weaker Q4, may have contributed to the stock price decline. The company acknowledged the possibility of a softer Q4 during its post-earnings call, attributing it to factors such as furloughs, fewer working days, and a reversal of third-party revenue. In other news, Infosys announced that it will implement annual salary hikes of 6-8% for employees in India, with the increments set to take effect in January 2025.

This marks the first phase of the company’s planned salary revisions, with the second phase scheduled for April 2025. Employees outside India are likely to receive low single-digit increments. The Murthy family’s financial setback serves as a reminder of the volatility associated with significant equity stakes in publicly traded companies.

As Infosys navigates this challenging period, it will need to focus on regaining investor confidence and stabilizing its position in the competitive tech landscape.

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Andrew covers investing for considerable.com. He writes on the latest news in the stock market and the economy.