Infosys Technologies Ltd chairman and chief mentor N.R. Narayana Murthy sold one-fourth of his holding in the company, India’s second largest software services provider, to set up a venture capital fund that will support young and promising entrepreneurs.
Murthy held nearly 3.18 million shares in the firm prior to the sale of 800,000 shares on Thursday. The sale raised Rs174.3 crore that would be used to set up the venture capital fund, according to a filing Infosys made to the National Stock Exchange.
“The venture capital fund will encourage and support young entrepreneurs having brilliant business ideas. The fund will primarily invest in India and may on a case-to-case basis consider investing overseas,” according to the filing.
In seeking to use his personal wealth to fund promising enterprises, Murthy is following the example of Azim Premji, chairman of India’s third largest software services provider Wipro Ltd. Premji in 2006 started a similar fund, called PremjiInvest, which has a corpus of around $1 billion. Read more