Written By Indian multinational corporation Infosys, one of the world’s largest consulting and IT services firms, has been facing a tough time lately, and it’s not just the company that’s being affected. Akshata Murty, the wife of UK Chancellor Rishi Sunak, is one of the many shareholders who suffered losses after Infosys’ recent share price drop.
Murty, the daughter of Indian billionaire and Infosys co-founder Narayana Murthy, is a director of the company and owns a significant stake in it. Her net worth has been estimated at over £500 million, largely derived from her stake in Infosys.
However, Infosys’ recent poor performance has taken a toll on her finances. The company’s shares fell by more than 14% on April 12, 2021, wiping out around $8.5 billion in market value. This came after the company reported disappointing results for the fourth quarter of 2020, missing revenue and profit estimates.
Infosys attributed the poor performance to the impact of the COVID-19 pandemic on its business. The company reported a 2% drop in revenue for the quarter and a 2.3% decline in net profit.
Murty is not the only one who suffered losses as a result of the share price drop. Many other shareholders, including large institutional investors, saw their holdings decline in value. However, Murty’s high profile as the wife of the Chancellor of the Exchequer has put her losses in the spotlight.
This is not the first time that Murty’s ties to Infosys have attracted attention. Her connection to the company has been a topic of discussion in the UK since her husband was appointed Chancellor in February 2020.
Critics have questioned whether her association with Infosys presents a conflict of interest for her husband, given that the UK government is a major client of the company. Infosys has won several contracts with UK government departments, including the Home Office, the Department for Work and Pensions, and the Ministry of Defence.
However, both Murty and her husband have denied any conflict of interest. In a statement to The Times, a spokesperson for the Chancellor said: “The Chancellor has no direct interest in Infosys, and any decisions taken by the government regarding the company are made independently.”
Murty herself has also been vocal in her defence. In an interview with The Economic Times in October 2020, she said: “I am a professional in my own right, and I work in my own capacity. The fact that I am a director of Infosys should not be used against me or my family.”
Despite the assurances from Murty and her husband, the scrutiny of her connection to Infosys is likely to continue, particularly in light of the recent share price drop. Some critics argue that her position as a director of the company could give her an unfair advantage, particularly if she has access to sensitive information.
However, others argue that it is unfair to target Murty simply because of her family ties. Infosys is a publicly traded company, and any shareholder, regardless of their background, is entitled to own a stake in it.
The issue of conflicts of interest is a complex one, particularly in the context of public office. While it is important to ensure that those in positions of power are not unduly influenced by their personal connections, it is equally important to avoid unfairly targeting individuals based on their family background.
As for Infosys, the company will need to work hard to regain investor confidence following its recent poor performance. The IT services sector has been one of the few bright spots in the Indian economy in recent years, but the COVID-19 pandemic has taken a toll on the industry, as well as on many others.
