Nandan Nilekani rejoins News

Seshasayee, however, hit out at Murthy on Friday for carrying out "personal attacks" and making "false and slanderous accusations" against him, saying he was unable to understand the motivation for the persistent vendetta.

Co-founder Nandan Nilekani has returned to the company for a second innings, this time as non-executive Chairman in a Board-level shake-up that saw the exit of Chairman R Seshasayee along with two independent members.

The founders, led by N R Narayana Murthy, had alleged corporate governance lapses at the country's second-largest software services firm.

The stock jumped 3.14 per cent to close at Rs 941.15 on the BSE. During the day, it went up 4.49 per cent to Rs 953.50.

Terming the return of Nandan Nilekani as Infosys` Board Chairman an excellent idea, Sikka said the latter was an extraordinary leader and an iconic man.

Sikka's resignation as CEO last week escalated the tensions between the founders and the management of India's second largest software company. He was then named Vice- Chairman.

Infosys shares plumbed a more than three-year low on Monday but have risen since on expectations of Nilekani`s return. 

The company said in a statement, read out by Nilekani, that the Board is focused on the future, consistent with the commitment to good governance.

Stating that it was the Board`s "unanimous" decision in wanting him to return to the company, he said he was back with the company as "more than just a founder".