For the first time in several years, Infosys is no longer in the list of India’s top-10 most valued companies.

In the backdrop of CEO and MD Vishal Sikka resigning from Infosys, India’s second largest software exporter’s market capitalisation stood at ₹2 lakh crore, which put it in the 11th position, according data.

Indian Oil pips Infy

Infosys is replaced by Indian Oil, which has a market cap of ₹2.01 lakh crore. Similarly, on Friday too nearly ₹22,000 crore from the company’s market cap were wiped off after Sikka resigned. RIL is the most valued company in India, with a maret cap of ₹5.09 lakh crore.

The mood was also reflected on the stock, which closed at ₹873 or 5.3 per cent down when compared to Friday’s close at ₹923.

Though board could find relevant replacement in the next few months, historical analogies suggest focus disruption led by top management changes delays strategic execution and in-turn hurts financial performance, according to a note put out by Equirus Securities analyst Abhishek Shindadkar. Equirus has given a reduce rating on the stock, a sentiment which other brokerages brokerages have followed.

Industry watchers also point to the recent lawsuits filed in the US against Infosys related to securities fraud as another reason for a dip in its market capitalisation.

On August 19, a day after Sikka resigned, Bronstein, Gewirtz & Grossman, Pomerantz Law Firm, and Rosen Law Firm have launched investigations into matter of securities fraud, unlawful business practices and misleading information.

According to a press release by global investor rights law firm, Rosen Law Firm, it is investigating potential securities claims on behalf of shareholders of Infosys resulting from allegations that Infosys may have issued materially misleading business information to the investing public. Rosen Law Firm is preparing a class-action lawsuit to recover losses suffered by Infosys investors.

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