Shares of HCL Technologies declined marginally to Rs 1,669 apiece on August 20 after the company appointed Shiv Walia as the chief financial officer (CFO) effective September 6, following current CFO Prateek Aggarwal’s resignation.
HCL Technologies announced the appointment of Shiv Walia as the Chief Financial Officer (CFO) of the company with effect from the close of business on September 6, 2024. “After considering the recommendations of the Nomination & Remuneration Committee and the Audit Committee, has appointed Shiv Walia as the Chief Financial Officer (CFO) with effect from the close of business on September 6, 2024. Consequently, Shiv Walia would also be the Key Managerial Personnel of the Company,” the company said in a regulatory filing.
Shiv Walia will be taking over from Prateek Aggarwal, who has decided to step down from the position after serving in this role since October 1, 2018, to pursue opportunities outside HCL Tech. Prateek Aggarwal will continue to be with the company till September 6, 2024.
Morgan Stanley shared an ‘overweight’ rating on HCL Tech and set target price at Rs 1,705 apiece, implying an upside potential of 21 percent from current levels. Analysts believe that the internal appointment should help make transition smooth and should not be an area of concern for investors. Shiv Walia has been with HCL Tech since April 1998, with over 3 decades of experience.
Similarly, analysts at JPMorgan expect the transition to be smooth despite a surprising move. HCL Tech has historically enjoyed smooth transitions and expects this to be fluid as well, with improved transparency and focus on shareholder returns to continue, they added, maintaining a ‘neutral’ rating on HCL Tech and target price at Rs 1,510 apiece.
Aggarwal, who has been serving on the company’s board since October 1, 2018, decided to step down to pursue opportunities outside HCLTech. He will be with the company till September 6.
Meanwhile, Walia started his career with HCLTech in 1993 and has served across several finance leadership roles over the last many years. He is currently Corporate Vice President & Global Head of FP&A and Business Finance Operations.
This development comes at a time when the Indian IT sector has been witnessing major leadership churn, especially among CFOs. Case in point, former Wipro CFO Jatin Dalal joined Cognizant and former LTIMindtree CFO Vinit Teredesai joined Persistent Systems.
So far this year, shares of HCL Tech surged over 14 per cent, slightly outpacing Nifty 50’s 13 percent rise during the same period.
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