5/17/2021

FUNDAMENTAL ANALYSIS

Prakhar Gupta
FUNDAMENTAL ANALYSIS OF INFOSYS Page |1

INDEX

Sr. No Topic Page No.

1. About the Company Page 2

2. History Page 3

3. Timelines Page 4-5

4. Shareholding pattern Page 6

5. Sources Page 7

Prakhar Gupta- PGDM- 2020-2022

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ABOUT THE COMPANY

Infosys Ltd is a global technology service based firm that defines, designs and deliver
information Technology enabled business solution to their clients. The company provides
end-to-end business solution that leverages technology for their clients including technical
consulting, design development, product engineering, and maintenance, system integration,
package enabled consulting and Implementation and Infrastructure management services.

The company also provides software products to the banking industry. They have developed
Finacle, a universal banking solution to large and medium size banks across India and
overseas. Infosys BPO is a Majority owned subsidiary. Through Infosys BPO the company
provides business processes and management services such as offsite customer relationship
management, finance and accounting, administration and sales order processing. The
company is having a marketing and technical alliance with FileNet, IBM, Intel, Microsoft,
oracle, and system application products.

Infosys is a global leader in next-generation digital services and consulting. They enable
clients in 46 countries to navigate their digital transformation. With nearly four decades of
experience in managing the systems and workings of global enterprises, they expertly steer
their clients through their digital journey. Infosys does it by enabling the enterprise with an
AI-powered core that helps prioritize the execution of change. They also empower the
business with agile digital at scale to deliver unprecedented levels of performance and
customer delight. The always-on learning agenda drives their continuous improvement
through building and transferring digital skills, expertise, and ideas from the innovation
ecosystem.

Prakhar Gupta- PGDM- 2020-2022

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HISTORY

Infosys was founded by seven engineers in Pune, Maharashtra, India with an initial capital of

$250 in 1981. It was registered as Infosys Consultants Private Limited on 2 July 1981. In
1983, it relocated its office to Bangalore, Karnataka, India. The company changed its name
to Infosys Technologies Private Limited in April 1992 and to Infosys Technologies
Limited when it became a public limited company in June 1992. It was later renamed
to Infosys Limited in June 2011.

An initial public offering (IPO) was floated in February 1993 with an offer price
of ₹95 (equivalent to ₹550 or US$7.80 in 2019) per share against a book value
of ₹20 (equivalent to ₹120 or US$1.60 in 2019) per share. The IPO was undersubscribed but
it was "bailed out" by US investment bank Morgan Stanley, which picked up a 13% equity
stake at the offer price.

Its shares were listed on the NASDAQ stock exchange in 1999 as American depositary

receipts. The share price surged to ₹8,100 (equivalent to ₹28,000 or US$390 in 2019) by
1999 making it the costliest share on the market at the time. At that time, Infosys was
among the 20 biggest companies by market capitalization on the NASDAQ. The ADR listing
was shifted from NASDAQ to NYSE Euronext to give European investors better access to the
company's shares. Its annual revenue reached US$100 million in 1999, US$1 billion in 2004
and US$10 billion in 2017.

In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-Davidson,

being the 18th international office in the United States. Infosys hired 1,200 United States
employees in 2011, and expanded the workforce by an additional 2,000 employees in
2012. In April 2018 Infosys announced expanding in Indianapolis, Indiana. The development
will include more than 120 acres and is expected to result in 3,000 new jobs—1,000 more
than previously announced.

Prakhar Gupta- PGDM- 2020-2022

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TIMELINES
1981
Infosys is established by N. R. Narayana Murthy and six engineers in Pune,
India, with an initial capital of US$ 250. The company strikes its first
outsourcing contract with Data Basics Corporation, New York .

1983
Relocates corporate headquarters to southern Indian city of Bangalore, one
of the first software companies to set up operations in the city that becomes
India’s Silicon Valley.

1993
Lists on Indian exchanges and is among first in India to introduce employee
stock-option plan, a move to attract and retain talent.

1999
Becomes first Indian company to list on NASDAQ, raising the profile of the
Indian outsourcing industry in the United States.

2002
Narayana Murthy hands over chief executive role to co-founder Nandan
Nilekani. Murthy becomes chairman. Revenue reaches $500 million.

2005
Launches offer of American Depositary Receipts (ADRs) against existing local
shares in $1 billion deal, at the time the biggest conversion of Indian shares into
ADRs.

2006 Murthy steps down as chairman after 25 years at the helm of the firm after
reaching the company’s retirement age of 60, continues as non-executive
chairman and mentor.
2007
Infosys co-founder and chief operating officer Kris Gopalakrishnan takes over as
chief executive from Nilekani, who takes up the role of co-chairman .

2008
Announces $700 million-plus bid to acquire British consulting firm Axon, but
Prakhar Gupta- PGDM- 2020-2022
drops out of race after smaller domestic rival HCL Technologies makes a higher
offer.
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2009
Company’s headcount surpasses 100,000. Co-chairman Nandan Nilekani
resigns to join Indian government to launch nationwide biometric identity card
programme.

2014
The board of directors hike the dividend pay-out ratio to up to 40% of post-
tax profits. Four of the company's co-founders sell shares worth $1.1 billion,
cashing in on gains accrued after the stock value surged 20% since Mr. Sikka’s
appointment.

2015
Infosys acquires Panaya Inc., Skava and Noah Consulting LLC. The company
pledges $250 million to its 'Innovate in India' fund to foster fledgling start-ups.

2016-2017
Annual revenue touches $10 billion. Infosys announced a
partnership with Hewlett Packard enterprise to off er joint end to
end mainframe soluti on. Which will provide global enterprise
customers robust hardware and advanced soft ware architecture.
2019-2021 The Company has presence in 46 countries across 220 locations and now has
23 direct subsidiaries and 52 step-down subsidiaries. The Company
announced a strategic collaboration with spirit aero system, a leading aero
structures manufacturer.

SHAREHOLDING PATTERN

Following is the composition of current shareholding pattern of the company.

Prakhar Gupta- PGDM- 2020-2022

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Shareholding Pattern

Others
0% Promotors
13%

Public
31% Promotors
FII
DII
Public
Others
FII
33%

DII
23%

Source: 4. https://www.moneycontrol.com/india/stockpricequote/computers-
software/infosys/IT

Promoters’ holdings remain unchanged whereas the FII’s have increased from 32.26%
to 32.67%.

SOURCES

1. https://www.infosys.com/about.html
2. https://www.business-standard.com/company/infosys-2806/information/company-
history

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3. https://www.moneycontrol.com/company-facts/infosys/history/IT
4. https://www.moneycontrol.com/india/stockpricequote/computers-
software/infosys/IT
5. https://www.capitalmarket.com/Company-Information/Information/About-
Company/Infosys-Ltd/2806
6. https://en.wikipedia.org/wiki/Infosys#History
7. https://trendlyne.com/equity/share-holding/630/INFY/latest/infosys-ltd/

Prakhar Gupta- PGDM- 2020-2022