In a surprising turn of events, Infosys co-founder Narayana Murthy and his family have faced a significant financial setback as the value of their stake in Infosys dropped by a staggering Rs 1,850 crore. This decline comes after Infosys shares plunged nearly 6% in a single day, leaving the family’s fortune diminished.
The Murthy family, known for their association with Infosys and their contributions to the IT industry, collectively owns a 4.02% stake in the company. While the family’s wealth remains substantial, this sharp drop in Infosys stock has undoubtedly made headlines. Let’s take a closer look at what happened and how it impacted the family’s holdings.
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The Financial Blow: What Happened ?
On Thursday, the combined value of the Murthy family’s 4.02% stake in Infosys stood at Rs 32,152 crore. However, by the end of the trading day, the stock price had dropped by 5.89%, bringing the family’s stake down to Rs 30,300 crore—a loss of Rs 1,850 crore.
The decline in Infosys shares was part of a broader trend affecting IT companies, despite the company reporting positive Q3 results. The stock hit a low of Rs 1,812.70 on the Bombay Stock Exchange (BSE), contributing to the family’s financial loss.
Who Owns What? Narayana Murthy Family’s Stake in Infosys
The Murthy family’s connection to Infosys runs deep, with five members holding significant stakes in the company:
- Narayana Murthy: The co-founder of Infosys owns a 0.40% stake in the company.
- Sudha Murty: Narayana Murthy’s wife and a celebrated author and philanthropist, holds a 0.92% stake.
- Rohan Murty: Their son, a tech entrepreneur, owns the largest share among the family members at 1.62%.
- Akshata Murty: Their daughter, who is also the wife of former UK Prime Minister Rishi Sunak, holds a 1.04% stake.
- Ekagrah Rohan Murty: Narayana Murthy’s grandson holds a small 0.04% stake.
While the family’s collective stake remains valuable, the recent drop in Infosys shares has undoubtedly impacted their wealth.
Why Did Infosys Shares Drop?
The decline in Infosys shares can be attributed to a combination of factors, despite the company reporting strong headline numbers for Q3.
- Revenue Growth Concerns: While Infosys reported a 1.7% quarter-on-quarter (QoQ) growth in constant currency (CC) terms, analysts noted that this growth was driven by higher pass-through revenues and inorganic contributions, rather than core business growth.
- Seasonal Softness: Seasonal factors, such as furloughs and fewer working days, contributed to the decline in revenue growth.
- Market Skepticism: Investment firms like JM Financial and Sharekhan highlighted concerns about rising pass-through revenues and potential revenue declines in Q4 due to seasonality and other factors.
These factors combined to create a bearish sentiment around Infosys shares, leading to the nearly 6% drop.
The Bigger Picture: IT Sector Trends
The decline in Infosys shares wasn’t an isolated incident. Other IT companies also saw their stock prices affected, trimming their six-month gains to 5.42%. Despite positive trends in the IT sector, concerns about revenue growth and market conditions have created volatility.
For Infosys, the upward revision of FY25 revenue guidance was a silver lining, but it wasn’t enough to offset concerns about potential revenue declines in the coming quarters.
What’s Next for Narayana Murthy and Infosys?
While the Rs 1,850 crore loss is significant, it’s important to note that the Murthy family’s wealth remains substantial. Infosys continues to be a leader in the IT sector, and the company’s long-term prospects remain strong.
For Narayana Murthy, who has always been known for his visionary leadership and resilience, this financial setback is likely just a temporary blip. The family’s legacy with Infosys and their contributions to the industry remain unparalleled.
Final Words
The recent loss of Rs 1,850 crore in the Murthy family’s fortune highlights the volatility of the stock market, even for industry giants like Infosys. However, Narayana Murthy and his family’s legacy extends far beyond financial figures. As pioneers of India’s IT revolution, their contributions to the industry and society remain invaluable.
While the stock market may fluctuate, the Murthy family’s resilience and commitment to excellence are constants. As Infosys navigates the challenges ahead, it’s clear that the company—and the family behind it—will continue to play a pivotal role in shaping the future of technology and innovation.
Read More: JEE Mains Admit Card 2025: How to Download and Key Details You Need to Know
FAQs
1. How much stake does Narayana Murthy’s family hold in Infosys?
The Murthy family collectively owns a 4.02% stake in Infosys. This includes Narayana Murthy (0.40%), Sudha Murty (0.92%), Rohan Murty (1.62%), Akshata Murty (1.04%), and Ekagrah Rohan Murty (0.04%).
2. Why did Infosys shares drop by nearly 6%?
Infosys shares dropped due to concerns about core business growth, seasonal factors like furloughs, and skepticism around rising pass-through revenues. Despite strong Q3 headline numbers, these factors created a bearish sentiment, leading to the nearly 6% decline.
