Infosys' Institutional Investors Want Nandan Nilekani On Board

The clamour to bring Infosys co-founder Nandan Nilekani back to the company grew louder today with the firm's former CFO V Balakrishnan and a group of 12 major institutional investors seeking his return for the 'clean up'.

Nilekani, who was CEO of the company between 2002 and 2007, has so far refused to comment on the crisis Infosys is facing after Vishal Sikka last week abruptly resigned as chief executive citing slander by promoters.

The current management as well as the founders are said to be seeking support of key investors. The founders, insiders say, may want an EGM to be called to vote out the board.

Co-founder NR Narayana Murthy, who has been leading the campaign against the board accusing it of governance lapses, postponed his conference call with investors today citing health issues. The call is now scheduled for August 29.

Talking to PTI, Balakrishnan (ex CFO) said Chairman Seshasayee and co-chairman Ravi Venkatesan should be asked to go for "letting down shareholders" and Nilekani be made the Chairman.

A dozen institutional investors in Infosys including HDFC Asset Management, ICICI Prudential Asset Management and Birla SunLife Asset Management, have written to the board saying Nilekani's return would be welcomed as he enjoys the confidence of clients, shareholders and employees.

Nilekani - under whom Infosys had seen a 42 per cent CAGR in dollar revenue - is seen as someone who the co-founders, led by Murthy, would listen to and one who can restore order in the troubled company.

He fought the last Lok Sabha election from Bengaluru on a Congress ticket and lost. Yet, he was made advisor by the Narendra Modi government to oversee the drive for a less-cash economy after demonetisation.

Considered an execution man, he was one who rolled out India's biggest tech project, Aadhaar, under the previous UPA government.

Those seeking ouster of the current management say Nilekani has the credibility and political capital to act as a conduit between the warring board and the founders.

Infosys, in an emailed statement, said the company does not have any further updates to share at this point of time.

"We will not be making any comments on speculation and rumours," it added.

Emails sent to Murthy and Nilekani went unanswered, even as another founder S Gopalakrishnan said he did not wish to comment on issues related to Infosys.

Balakrishnan said given the current situation, the board should consider getting Nilekani at the helm.

"Nilekani is a good face to have ... I personally think if at all he comes back, he should come in as the chairman and try to identify a good CEO. That will be ideal situation," he said.

Balakrishnan argued that Nilekani had "done well" during his tenure at Infosys and was well connected with customers.

"Nilekani is a good global face and is most respected. Moreover, he has worked in large government projects...Aadhaar... he has the right credentials to come to the board," Balakrishnan said, but hastened to add that Nilekani's return is a "speculation" at this point.

The dozen investors, who together own roughly 10 per cent of the Infosys shares, in their letter to the board said, "Given his (Nilekani's) credentials, we feel, that his joining the board at this stage, will restore confidence of stakeholders in the company and also facilitate resolution of the contentious issues that Infosys is facing presently."

The founders and their families holds about 12.75 per cent stake.

Meanwhile, Infosys' third largest institutional investor OppenheimerFunds (2.16 per cent stake) has said its views on the company have not been "materially" impacted by Sikka quitting.

"The investment team's thesis on Infosys has not been materially affected by the CEO resignation," OppenheimerFunds spokesperson Kimberly Weinrick told PTI.

Another fund, Abu Dhabi Investment Authority (ADIA) - which owns 1.32 per cent stake in Infosys - declined to respond to a detailed questionnaire on the developments at the company.

The day Sikka announced his resignation, Institutional Investor Advisory Services (IiAS) had spoken out in favour of Nilekani being brought back on the board as its non-executive chairman.

IiAS had said the Infosys board has been "unable to protect its CEO" and to select a successor, it must begin by "reinventing itself".

"It must convince Nandan Nilekani to join the board once again as its non-executive chairperson," it had said in a report, adding that Nilekani should not see this as any other corporate job as Infosys is at the heart of Indian IT and its success will foretell how the sector will position itself for future.