Infosys, once a darling of the IT sector, has hit a rough patch. With a year-to-date (YTD) decline of 16%, the IT giant has entered bear market territory. In just the last five days, its share price of Infosys has tumbled nearly 7%, leaving investors anxious and wiping out significant wealth. Among those hit the hardest is none other than Infosys co-founder Narayana Murthy and his family, whose stake in the company has reportedly lost a staggering approx. Rs 6,875 crore in value.
The numbers behind the wealth erosion
On March 12, Infosys share price plunged over 5%, extending a two-day slide of over 8%. Murthy’s family collectively holds a 4.02% stake in Infosys, which, as of March 12, is valued at Rs 26,287 crore. This marks a drop from its approx. Rs 33,163 crore valuation just three months ago.
Narayana Murthy personally owns a 0.40% stake, now worth around Rs 3,299.79 crore, a decline of Rs 684 crore.
Sudha Murty, his wife, holds 0.92%, with her stake now valued at approx. Rs 7,600.41 crore, a loss of around Rs 1,573.54 crore.
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Rohan Murty, their son and the largest stakeholder in the family with 1.62%, saw his holding shrink by around Rs 2,771 crore, bringing the value down to about Rs 13,378.5 crore.
Akshata Murty, Narayana Murthy’s daughter and the wife of former UK Prime Minister Rishi Sunak, owns 1.04%, with her stake now worth Rs 8,591 crore, an approx. Rs 1,779 crore decline.
Ekagrah Rohan Murty, Murthy’s grandson, holds a minor 0.04% stake, which has also taken a hit.
Adding to the woes, global brokerage downgrades and concerns over weakening IT spending in the US, also had a significant impact on Infosys key market.
Infosys under pressure: What’s driving the sell-off?
The sell-off in Infosys shares is not happening in isolation. The broader IT sector has been under pressure, with the Nifty IT index as well facing the pressure amid global concerns. Infosys, along with peers Wipro and HCL Tech, has led the decline.
Brokerage firm Morgan Stanley recently downgraded the stock to ‘equal-weight’ and slashed its target price from Rs 2,150 to Rs 1,740.
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