Vishal Sikka's resignation wipes out over Rs 17,000 crore from Infosys market capitalisation

Infosys CEO and MD Vishal Sikka's resignation wiped out nearly Rs 17,000 crore from the market capitalisation of India's second largest software exporter on Friday.

The stock which closed with a market capitalisation of around Rs 2,29,285 crore on Thursday, tumbled up to 10 percent, leading to a fall in its market capitalisation to Rs 2,12,262  crore.

The Bengaluru-based firm sent a release to the exchanges informing them about the crucial development at around 9:09 am before the market opened. As the market came across the news of Sikka's resignation, the Infosys stock took a downward path and fell over 9 percent or 97 points to 924 level on the BSE.

The stock is down 8.26 percent or 83 points on an year-to-date basis  now compared to 1 percent or 10 points movement based on yesterday's closing price.

On an yearly basis, the stock is down 9.57 percent or 98 points.

The stock closed at four-month high on Thursday a day after the Bengaluru-based firm said it would consider a proposal for buyback of its equity shares at its meeting to be held on August 19.

It was the top gainer on Nifty 50 and the 30 stock Sensex. A share buyback is repurchase of a company's outstanding shares that reduces the number of shares in the open market. The buyback is carried out usually at a premium compared with a current market price at that point.

Sikka cited distractions and disruptions as reasons for his resignation. Sikka will hold office until permanent CEO is appointed. For now, Sikka has been appointed as executive vice chairman of the firm. UB Pravin Rao has been appointed as interim MD and CEO.