History of Infosys

The Infosys came into existence in 1981, in Pune which was founded by Mr.N.R.Narayan Murthy, with his team Nandan Nilekani, NS Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems.

Infosys Founders

The company was started with meager initial capital of Rs 10,000 and was named Infosys Consultants. Murthy borrowed the sum from his wife Sudha Murthy. The front room of Murthy's home was the company's first office, although the registered office was Raghavan's home.

Infosys did not have a computer till 1983, because Murthy could not afford to bring an imported option he liked. It took almost two years to get a computer on their own. It was a Data General 32-bit MV8000.

Nagavara Ramarao Narayana Murthy, popularly known as Narayana Murthy or NRN Murthy was born on August 20, 1946, in Mysore, Karnataka. Despite being born into a middle-class family and facing several other hurdles he showed significant academic brilliance during his childhood.

Narayana Murthy received his Bachelor’s degree in Electrical Engineering from the University of Mysore and went on to pursue his Masters at the prestigious Indian Institute of Technology, Kanpur. After completing his education Narayana Murthy went on to work as a Research Associate at IIM Ahmedabad.

The company grew slowly until the early 1990s, when the Indian government’s decisive move toward economic liberalization and deregulation contributed to dramatic growth in the country’s high-technology and computer sectors. Murthy aggressively expanded his company’s services and client base, negotiating deals with many overseas businesses to provide them with consulting, systems integration, software development, and product engineering services. By 1999 Infosys had joined NASDAQ, becoming the first Indian company to be listed on an American stock exchange. The following year Asia week included Murthy in its Power 50, the magazine’s annual list of the most powerful people in the region. In addition, BusinessWeek named him one of its “Stars of Asia” for three consecutive years (1998–2000), and he was Fortune magazine’s 2003 Asian Business Man of the year.

Infosys Business Model:

Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services.

The company's products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys Nia, an artificial intelligence platform; Infosys McCamish - an insurance platform; Wingspan, a customizable learning platform; Stater mortgage servicing platform; Panaya automation suite; and Skava, an e-commerce suite. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries.

It has collaboration agreements with Rolls-Royce, BP plc, Newmont Corporation, RXR Realty, Majesco Limited, and Centre for Accessibility Australia; and a strategic partnership with The Economist Group Limited to enable and enhance sustainability solutions through a business-to-business model.

The Infosys IPO Story :

Infosys made its debut on the stock market 28 years ago, in June 1993. The initial public offer (IPO) of Infosys was not received well and got a cold response from the retail investors. The IPO remained undersubscribed until investment bank Morgan Stanley bailed it out by buying 13% stake in the company.

Nevertheless, the IPO turned out to be a blockbuster and it's worth regretting for those who gave it a miss. Infosys’ IPO offered per share at Rs 95 and an investment worth Rs 10,000 in the IPO is currently worth over Rs 15.30 crs.

The magic of compounding in Infosys Share is given below:

Infosys has been one of the fastest growing companies in India, providing business consulting, information technology and outsourcing services. Recently, Infosys raised its revenue growth for fiscal year 2022 to 14-16 per cent from 12-14 per cent earlier. Revenue in the June quarter rose 18% year-on-year to Rs 27,896 crore, aided by strong growth across segments, according to Livemint.

The shares of Information Technology major, Infosys hit a record high on 24th Aug 2021 which helped the company cross $100 billion in market capitalization. Infosys is the fourth Indian company to achieve this milestone. Reliance Industries (m-cap of $140 billion), Tata Consultancy Services (m-cap $115 billion) and HDFC Bank (m-cap $100.1 billion) are the other Indian firms in the club with Infosys.

The latest quarterly results of Infosys Ltd is shown below :

Data Source : The Economic Times (Markets)

Infosys Ltd provides solutions on two bases, in which their total business revenue depends upon:

DIGITAL

Artificial Intelligence-based Analytics

Big Data Management

Engineer Digital Products

IoT (Internet of Things)

Cloud Application

Cyber Securities

CORE

Application Management and Development Services

Independent Validation Solutions

Product Engineering and Management.

Infrastructure Management Services.

Entreprise Application Implementation

Support and Integration services.

The company has completely focused on improving productivity with better cost management for its clients.

List of Infosys CEOs

Name	Period
Narayan Murthy	1981 to March 2002
Nandan Nilekani	March 2002 to April 2007
S. Gopalakrishnan	April 2007 to August 2011
S. D. Shibulal	August 2011 to July 2014
Vishal Sikka	August 2014 to August 2017
UB Pravin Rao (interim)	August 2017 to December 2017
Salil S. Parekh	January 2018 onwards

On the technical know-how front, the company is an innovation leader in automation, digital transformation, agile and big data. The company also has 8 Innovation Hubs across US and EU along with 9 global digital studios. On the workforce front, the company has 2.42+ lakh employees and is focused on the localization of its workforce. They also have 60,000+ employees deployed in digital business which includes chatbots, AI, apps and platforms. Overall the company has a wide economic moat due to its scale, market presence, innovation and workforce but it is still not a monopoly.

Therefore investors can buy Infosys Ltd Stock at current levels of Rs.1757/- or any further correction in the stock accumulate the stock and expect a price target of Rs. 2,850/- in 3 to 5 years’ time zone.