LIC's stake in Infosys rises to 7.02%

New Delhi: Life Insurance Corporation of India (LIC) on Saturday said it has acquired an additional two per cent stake in Infosys in over three years ending February 2017, taking its total shareholding in the Bengaluru-based software major to 7.02 per cent.

The disclosure comes at a time when the company's founders and its board have clashed over the issues of corporate governance, CEO compensation and severance pay of former CFO.

LIC, in a filing to BSE, said it has acquired about 4.63 crore shares or 2.016 per cent stake, thus taking its total holding in Infosys to 7.023 per cent.

The transactions were made through market purchases between the period September 26, 2013 to February 07, 2017, it said.

LIC said that the equity share capital/total voting capital of Infosys after the deal stood unchanged at 229.6 crore shares of face value of Rs 5.

Over the last few days, Infosys has come under fire from its founders like NR Narayana Murthy, who have raised concerns on corporate governance lapses and questioned the compensation paid to CEO Vishal Sikka.

Murthy, along with other co-founders Nandan Nilekani and S Gopalakrishnan have written to Infosys board asking why Sikka's compensation was raised and hefty severance packages offered to two top-level executives who quit the company.

Sikka was paid Rs 48.7 crore in base salary, bonus and benefits last year as compared to base salary of Rs 4.5 crore for a partial period in 2015.

Murthy has questioned "paying the former CFO (Rajiv Bansal) a 30-month severance pay which amounted to Rs 23 crore."

Infosys, however, has denied any corporate governance lapses, and emphasised that its board is fully aligned with the strategic direction of Sikka and is very "appreciative of the initiatives taken by him in pursuance of this transformation".