Vyakarnam Anjenaya Sastry: The man who donated shares worth Rs 1,850 crore to Infosys

Sastry, the first non-founder to get on the Infosys board, plays down his generosity saying that he was only returning a favour.

BANGALORE: When Infosys celebrated its 30th birthday in 2010, all employees were gifted a share each. But not many of them know that it was the benevolence of a former colleague that made such a gesture possible. Vyakarnam Anjenaya Sastry, 71, had joined Infosys in 1990 when the Bangalore-based software maker's revenue hovered at just Rs 2.5 crore.
He had bought about 2% of Infosys for Rs 1.6 lakh but donated half of his holdings to the Infosys Employee Welfare Trustwhile leaving the company in 1996. If he had held on to the shares, they would have been worth about Rs 1,850 crore (1% of Infosys).
But Sastry, the first non-founder to get on the Infosys board, plays down his generosity saying that he was only returning a favour. "I was supposed to join Infosys in April-May, but then (Infosys founder NR Narayana) Murthy said that if you take the shares before March 31, then you will be able to have bonus shares. So even
Murthy showers praise on Sastry
Murthy, who recently came back from retirement to once again head the company he founded for a brief period, is effusive in his praise of Sastry. "He (Sastry) is a wonderful professional and a thorough gentleman," Murthy said in an email. "He is a true Infoscion in every sense of the word." The admiration is mutual. Sastry said Murthy did the right thing by coming back from retirement.
"I still back him because I feel even when everyone and everything was against him, he decided to come back (to Infosys). It takes guts to do it at this age, and I think he was successful in doing both the things: finding a successor and getting company back to growth." Sastry, who now holds less than 0.5% of the company, had first met Murthy in 1989 while planning to put up a stall at the computer show CeBIT in Germany.
Both Infosys and Sastry's then employer, Macmet India, a mathematical modelling and simulation company, couldn't afford the entire amount. So they shared a stall. After coming back, Sastry asked Infosys to buy his company's simulation unit. But Nandan Nilekani, one of Infosys' cofounders, had other plans. "Nandan said 'we have decided that we won't be able to buy that particular unit but we have decided to buy you'," recalled Sastry, who became a multimillionaire when the company went public in 1993.
He was offered a seat on the Infosys board and asked to set software quality standards across development projects for clients, including Reebok. For his part, Sastry has always believed in maintaining a low profile, and staying away from the limelight. V Balakrishnan, a former Infosys board member and chief financial officer, remembers Sastry as an early champion who established Infosys' reputation globally.
According to Balakrishnan, Sastry had a major role in Infosys getting the coveted ISO 9000 certification. "I still fondly remember the glass of champagne we all had at our Koramangala office when we actually got the certification," said Balakrishnan. "It requires a very big heart to donate such a large amount of money for the welfare of employees.
Very few people can do this." Over the years, Sastry has used his wealth to fund philanthropic activities and create successful startups. He cofounded RelQ, a software testing company, which was sold to EDS in 2007 for around $40 million. As for Infosys' new CEO Vishal Sikka, Sastry has some words of advice. "The only thing I wish to happen is for Sikka to move to Bangalore and start living here.
Because unless he lives here and starts working from here, it could become a little bit of challenge," he said. "No matter how many times he comes, he will always be a visitor."