On Monday, Shiv Nadar resigned as HCL Technologies Managing Director and Chief Strategy Officer. After the news, the shares of HCL tech slumped even further. Meanwhile, Nadar is reported to be appointed as the Chairman and Strategic Advisor to the HCL’s board. The billionaire Padma Bhushan recipient was the founder of HCL Technologies and laid the founding stone of the company in 1976.
Shiv Nadar, the Chief Strategy Officer and MD of HCL Technologies, a multi-national IT company, laid his resignation as he completed 76 years of his life. According to the company’s regulatory filing, Mr. Nadar tendered the resignation on July 19 and his resignation has been effective from July 20.
However, the IT consulting pioneer and billionaire industrialist is now appointed as the ‘Chairman Emeritus and Strategic Advisor’ to the company’s board of directors. He will be holding his position for the next 5 years with effect from July 20.
“Will continue to benefit from him as Chairman Emeritus”: HCL Tech
The company’s regulatory filing stated-
“In order to continue to benefit from his vast knowledge, experience, and wisdom in an advisory role, the Board of Directors in its meeting held today, after considering the recommendations of the Nomination & Remuneration Committee, has approved the appointment of Shri Shiv Nadar as the ‘Chairman Emeritus and Strategic Advisor to the Board’ for a term of five years with effect from July 20, 2021.”
Vijaykumar now CEO and MD of HCL Tech
Further, Mr. Nadar will be paid the remuneration as per the consensus and approval of the company’s shareholders. As Mr. Nadar leaves the pedestal, the space will now be occupied by C. Vijayakumar – who acted as the CEO and the President of the company. Now, Vijay Kumar will carry the joint title of MD and CEO of HCL Technologies for the next 5 years.
Stocks of HCL Tech Dip after Multiple Reports
After the news of Mr. Nadar stepping down as the MD of HCL Technologies, the company’s shares dipped as much as 3%. The slump also came amid the company’s June 2021 quarter earnings were announced recently.
On Bombay Stock Exchange, the shares went lower by 3% to Rs. 969.50, and on National Stock Exchange, the company’s stock dipped as much as 3% to Rs. 969.35. The slump came after HCL shared that the company registered a 9.9% increase in net profit and earned Rs. 3,214 crores. The earning however has failed to allure investors and traders.
The Journey of Shiv Nadar – Founder of HCL Tech
HCL Group was founded by Mr. Nadar in 1976. The group started off as hardware company and made its mark in India’s tech market by manufacturing the first indigenous computers. The company then moved on to IT Consultancy, and operators across sectors including aerospace, banking, healthcare, insurance, logistics, energy and utilities, and more.
HCL has also been credited to make the crucial indigenous innovations as it developed India’s indigenous 8-bit microprocessor in 1978 and further developed the first-fine grained UNIX installation in 1989.
Establishing Shiv Nadar Foundation for Philanthropy
Back in 1994, Mr. Nadar established the philanthropic arm of the HCL Tech by the name of Shiv Nadar Foundation. According to reports, the philanthropic organization has invested an upward of $988 million in its bid to set up tech-based transformational education institutes. These institutes, according to the company, nurture the next Indian leaders.
Roshni Nadar Succeeded Her Father in 2020
In July 2020, Mr. Nadar gave up his Chairman’s seat for his daughter Roshni Nadar Malhotra. By becoming the Chairman of HCL, Roshni became the first Indian woman to be the chairperson of an IT company that’s listed on the stock exchange. In the 2020, Roshni ranked 55th in the 100 Most Powerful Women list by the Forbes.