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    Infosys shareholders continue to question Panaya's future

    Synopsis

    Panaya acquisition was a major bone of contention for between Infosys founders and Sikka-led management.

    Infosys shareholders continue to question Panaya's future
    ET first reported last week about Infosys' renewed investment in Panaya and appointment of a new CEO.
    BENGALURU: Infosys shareholders continue to fret over Panaya's future as many of them sought clarity on the Israeli subsidiary's growth opportunities from the company's management at the 38th annual general meeting.

    Panaya acquisition was a major bone of contention for corporate governance battle between Infosys founders and Vishal Sikka-led management. Later, the software services exporter put them up as assets for sale since they did not add enough financial value to Infosys' business. Infosys declassified Panaya and Skava since it failed to find the right buyers.

    Panaya was bought by Infosys in 2015 for $200 million and saw two rounds of write-down in valuation.

    While a set of shareholders asked for explanation on certain accounting numbers of Panaya; others asked about the prospects of Panaya and the company's decision to refocus on integrating it with existing service lines.

    "The management has already provided for Rs 850 crore towards Skava and Panaya. Why the investigation report relating to these entities has not been made public. What will happen to the new investment," asked Tamal Kumar Majumadar, one of the shareholders.

    ET first reported last week about Infosys' renewed investment in Panaya and appointment of a new CEO.

    Infosys chief executive officer Salil Parekh said the company is repurposing Panaya solutions into other business segments.

    "We are looking at how we are going to refocus and repurpose the activities within those businesses that will help in the areas that we are now looking to grow the company in.we have assigned senior members of the leadership team one each for Panaya and Skava to look at those and try to see how we can combine these in retail , consumer products and manufacturing segments," Parekh told shareholders.



    ( Originally published on Jun 22, 2019 )
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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