The founder of the country’s leading information technology (IT) company Infosys, NR. Narayana Murthy has made a tremendous disclosure. According to him, in 1990, the company got an offer to buy for only Rs 2 crore. However, this offer was turned down by himself and his co-founders. Now, this same Infosys has become a company with a market cap of Rs 6.60 lakh crore.
Second largest software export company
Infosys is the second-largest software exporting company in the country. Murthy has given this information in an interview given to an English website. In fact, on July 24, 30 years of liberalization are being completed in the country. In this sequence, he has given this information. He said that we decided to stay in the company at that time and the result is in front.
Infosys gains due to reforms
Murthy said that everything that it is today would not have been possible without the commitment of the founders of the company at that time and the economic reforms that took place in 1991. Due to these reforms, companies like Infosys were allowed to explore the market for themselves. Earlier, they had to depend on the government for various approvals. He told how the big change in 1991 had suddenly opened the way for success for Infosys.
The company was of very small size in 1991.
Murthy said that in 1991, Infosys was a very small company. The expectations, ambitions and scope of the company were also not large. The company’s office was in Jaya Nagar, Bangalore. A lot of our time was spent travelling to Delhi to get the import license to buy computers and accessories. The company’s young employees used to go abroad to work on projects and had to go to the Reserve Bank of India (RBI) in Mumbai to get foreign exchange for them.
In those days the process of importing computers was quite complicated. Banks were not aware of software and term loans and working capital loans were not given to the software industry.
Rapid happiness of Indian market
Talking about the boom in the Indian stock market and the enthusiasm about Internet-connected companies at this time, Murthy said, “I wish these companies more success. Infosys was the second software company to bring a public offer. The first company was Mustek of Murthy’s friend Ashok Desai, whose public offer came in 1992. Infosys wanted to launch an IPO in 1991 but it got delayed due to Rajiv Gandhi’s assassination, Babri Masjid demolition and Harshad Mehta scam.
The stock market didn’t know
Murthy said that then the stock market was not aware of the potential for software services in the export market, especially in the US. However, Infosys had prepared well for the public offer. It starred Nandan Nilekani, V Balakrishnan and G R Naik along with Murthy in pivotal roles.
There was a delay in getting the approval of the Reserve Bank
Murthy said that there was a time when one of our officers had to go to Paris and Frankfurt for a meeting. It took 15 days to get approval from RBI. Because of this, he had to stay for one more day in Paris and in Frankfurt. On this, the Reserve Bank asked for an answer that why did it stop for a day? When I was on the board of RBI 15-20 years ago, I told this to the then, Governor Bimal Jalan. He laughed at this.
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