Documente Academic
Documente Profesional
Documente Cultură
INDEX
Sr. No.
Particulars
Page
No
Organizations
21
Markets
27
Financials
34
Governance
43
Declaration
We hereby declare that the Enterprise analysis project for IGate submitted for internal evaluation
purpose of MBA first year is our original work and not formed basis for award for any degree,
internship, fellowship or any other similar titles.
Suarj Sharma
( _________________________)
UNIT 1
ENTERPRISE HISTORY AND BACKGROUND
1.1 INTRODUCTION
IGATE is a global leader in providing integrated technology and operations-based solutions.
IGATE provides solutions to clients' business challenges by leveraging its technology and
process capabilities, underwritten by an understanding of domain and industry imperatives.
We offer productized applications and platforms that provide the necessary competitive and
innovation edge to clients across industries, through a combination of speed, agility and
imagination. At a time when the technology landscape is changing dramatically, we believe that
these three attributes will be the key guiding principles for us to navigate our way to higher value
for all our stake holders.
iGATE Corporation (iGATE) is an outsourcing provider of integrated end-to-end offshore centric
information technology (IT) and IT-enabled operations solutions and services. iGATE delivers a
range of IT services through globally integrated onsite and offshore delivery locations primarily
in India. The Company offers its services to customers through industry focused practices,
including insurance and healthcare (IHC), manufacturing, retail and logistics (MRDL), banking
and financial services (BFS), communications and utilities (CEU), and media and entertainment
(MELT) and through technology focused practices. It operates its business principally through its
wholly owned operating subsidiaries iGATE Technologies, iGATE Global and Patni. On May 12,
2011, it acquired Patni Computer Systems Limited (Patni).
1.2 HISTORY
1996
1997
1998
2000
: Mascot Systems Limited (Mascot), India was formed as the offshore development
center of IGATE
2002
2003
2004
2006
2007
: Among Top Three Best Employers in India (7th Annual Dataquest-IDC Survey)
2008
: Infrastructure enhanced with creation of new India Corporate Office on a 100,000 sq. ft.
campus at Bangalore, India
2007
: Among Top Three Best Employers in India (7th Annual Dataquest-IDC Survey)
: Ranked No.1 in Data Warehousing, Data Mining and Business Intelligence in the
Annual Black Book of Outsourcing User Survey
: Delisting of IGS in India
: Declares First Annual Dividend
: Inaugurates delivery center in City of Ballarat, Australia
2009
: Ranked 14th in the Black Book of Outsourcing's "50 Best Managed Global Outsourcing
Vendors" list
: Ranked 2nd in Dataquest-IDC "Best IT Employers in India" Survey
: Inaugurates delivery center in Guadalajara, Mexico
2010
2011
2012
: Completes integration with Patni Computer Systems in record time, including delisting
of Patni from Indian bourses
: Ranked Third in the Annual Dataquest-IDC Best Employer Survey 2011 in India
: Crosses revenues of US$ 1 billion
: Announces new delivery center in Sterling, Virginia, adding to its existing U.S. delivery
centers in El Paso, Texas and Pensacola, Florida
: Governor of Florida lauds IGATE to be a leading job creator in the region
: Announces a capital outlay of US$ 120 million towards construction of world class
training facilities and expanded delivery infrastructure in India
2013
2014
Mission
Values
Character
Commitment
Competency
Our collective values are defined by three words: Character, Commitment and Competency. A
sigma of each individual character pronounces the character of the Company. Our employee
policies and HR modules are designed to campaign the need to have sterling character that
breeds unquestionable integrity in everything we deliver. We propound the need to have a sense
of belongingness to the work each one does. We lay utmost importance to being accountable to
our deliverable, and bound by the vision of being committed to the success of all our
stakeholders, internal and external. We create an ecosystem for employees to build the right
competencies that are needed to build and enhance the necessary skill sets. We incubate a culture
of constructive impatience that we believe, begets faster and smarter ways of getting things done.
Ashok Vemuri
President and CEO, IGATE Corporation
Ashok Vemuri is the President and CEO of IGATE Corporation and also a Member of the Board.
Ashok most recently served as Member of the Board of Infosys Limited, Head of Americas and
Global Head of Manufacturing and Engineering Services.
Ashok also previously served as the Chairman of Infosys China and was on the Board of Infosys
Public Services. He earlier established and ran the Financial Services and Insurance business for
nine years, making it the largest business unit within Infosys. In his role as Head of Americas,
Ashok was responsible for Infosys' business operations in the company's largest region with
$4.7 billion in revenues and he oversaw all facets of the business, from strategic direction to
maintaining and improving financial and operational efficiency.
Ashok previously directed the work of Infosys Foundation in the U.S. Under his guidance, the
Foundation supported the education of underprivileged students, the reskilling of former auto
sector employees in Detroit and other initiatives to drive education in the fields of science,
technology, engineering and math. He has also been involved in the UN's Every Woman Every
Child movement to improve health.
Prior to joining Infosys in 1999, he worked in the investment banking industry at Bank of
America and Deutsche Bank.
Ashok has been widely recognized for his expertise in global sourcing and technology-led
transformation. In 2013, he was honored as one of the 50 Outstanding Asian Americans in
Business by the Asian American Business Center. In 2008, he was selected by leading Indian
magazine, Business Today, as one of India's 25 Hottest Young Executives.
9
As a well-respected business and global sourcing leader, Ashok has appeared on broadcast
outlets including CNBC and NDTV, and has been widely quoted in leading publications,
including The New York Times, International Herald Tribune, American Banker, and Waters
Technology. Ashok is also recognized for his thought leadership and is a frequent speaker at
conferences and symposiums organized by the American Bankers Association, the Asia Society,
Wall Street and Waters Technology, among others.
Ashok is committed to the education of future business leaders, serving on the Board of Visitors
of the Fuqua School of Business at Duke University. He was also elected to the Forum of Young
Global Leaders (YGL) in 2009 by the World Economic Forum (WEF). Ashok was elected to the
Board of IT Governors in the WEF in 2014.
He holds a bachelor's degree with honors in Physics from St. Stephen's College, Delhi, and a
master's degree in Business Management from the Indian Institute of Management, Ahmedabad.
10
Sunil Wadhwani
Co-Chairman, IGATE Corporation
Sunil Wadhwani is the Co-Founder and Co-Chairman of IGATE Corporation (NASDAQ: IGTE).
Sunil was one of the early pioneers of the IT industry. His vision guided the development and
execution of IGATE's worldwide strategy.
Today, IGATE has over 40 sales offices and delivery centers across 16 countries with over
31,000 employees, providing Consulting, IT and Business Process Outsourcing services. IGATE
has been ranked among the top three Best Employers to work with for the past six years in a row,
and has received several awards for the high quality of its services.
In addition to IGATE, Sunil is the Co-Founder and Chairman of the Board of Mastech
Corporation, a provider of high-value information technology services and solutions. Earlier, he
was the Co-Founder and CEO of Mastech. Under his leadership, Mastech began its operations in
1988 and grew to over $500 million in revenues by 1999. Mastech won several awards including
that from Business Week and was listed four times in Inc. Magazine's ranking of the fastestgrowing companies in the U.S.
Sunil has received numerous awards including "Entrepreneur of the Year" from Ernst & Young.
Sunil also serves on the Boards of Directors/Trustees of the U.S. Federal Reserve Bank
(Pittsburgh), Carnegie-Mellon University, and the United Way.
Sunil earned a Master's degree in Management from Carnegie-Mellon University, and a
Bachelor's degree in Technology from the Indian Institute of Technology.
11
Ashok Trivedi
Co-Chairman, IGATE Corporation
Ashok Trivedi is the Co-Founder and Co-Chairman of IGATE Corporation (NASDAQ: IGTE).
Ashok was one of the early pioneers of the IT industry and his vision has guided the
development and execution of IGATE's worldwide strategy.
Today, IGATE has over 40 sales offices and delivery centers across 16 countries with over
31,000 employees, providing Consulting, IT and Business Process Outsourcing services. IGATE
has been ranked among the top three Best Employers to work with for the past six years in a row,
and has received several awards for the high quality of its services.
In addition to IGATE, Ashok is the Co-Founder and Member of the Board of Mastech
Corporation, a provider of high-value information technology services and solutions. Earlier, he
was the Co-Founder and President of Mastech. Under his leadership, Mastech began its
operations in 1988 and grew to over $500 million in revenues by 1999. Mastech won several
awards including that from Business Week and was listed four times in Inc. Magazine's ranking
of the fastest-growing companies in the U.S.
Ashok has also led the launch of over ten new IT service businesses in emerging technologies,
and has been an angel investor in over 20 startups in technology and financial service businesses.
He has been recognized by various organizations including Ernst & Young and Inc. Magazine.
Ashok holds an MBA from Ohio University, and a B.S. and M.S. in Physics from Delhi
University. He has attended the Owner/President Management Program at the Harvard Business
School. Ashok's interests are traveling, reading, and goal
12
Martin G. McGuinn
Director, IGATE Corporation
Martin G. McGuinn, has over 25 years of experience at the former Mellon Financial Corporation
(now The Bank of New York Mellon), a global financial services company headquartered in New
York. He was the Chairman of the Board and Chief Executive Officer of Mellon from 1999 to
2006.
Under Martin's leadership, Mellon was able to narrow its strategic focus and transform from a
broad-based commercial bank to a global leader in asset management and asset servicing. During
this same period, Mellon became the 5th largest global custodian and the 12th largest asset
manager in the world. Based on the organic growth of its asset management and asset servicing
businesses, Mellon was able to significantly expand its global presence. In June 2004, Mellon
opened a new European headquarters in London where over 1800 employees are based.
Martin also serves on the Board of Directors of Celanese Corporation and the Chubb
Corporation. He is also a member of the Advisory Board of CapGen Financial, a private equity
fund. He has previously served on the Boards of General Reinsurance Corporation, MasterCard
International and MasterCard USA, and Shinsei Bank. Originally from Philadelphia, Martin
earned his Bachelor's degree and a juris doctor degree from Villanova University.
13
Goran Lindahl
Director, IGATE Corporation
Goran Lindahl was the CEO and President of the global technology and engineering group ABB
headquartered in Zurich, Switzerland from January 1, 1997 to December 31, 2000, and spent
more than 30 years in various positions within ABB.
He earned a Master's Degree in electrical engineering from Chalmers University of Technology
in Gothenburg, Sweden in 1971. Lindahl is the Chairman of IKEA GreenTech AB and LivSafe
Group. In addition, he is also a Member of the Sony Corporation International Advisory Board
and serves on the Board of Directors of INGKA Holding BV (IKEA) and various other private
non-public companies and advisory boards.
W. Roy Dunbar
Director, IGATE Corporation
Roy Dunbar is Chairman of private companies engaged in renewable energy and green
construction, prior to which he served as the Chief Executive Officer of Network Solutions Inc.
He served as President of Global Technology and Operations of MasterCard Worldwide.
Previously, Roy worked for Eli Lilly for 14 years where he last served as President of Eli Lilly's
14
Intercontinental Region. Roy has served as the Chairman of the Board of Network Solutions,
LLC and as Director of Electronic Data Systems Corporation.
Roy currently serves as a Director of Humana Inc. He graduated from Manchester University in
the United Kingdom with a degree in Pharmacy in 1982. He later received a Master's of Business
Administration from Manchester Business School. He is a Member of the Royal Pharmaceutical
Society of Great Britain and serves on the Board of the Executive Leadership Council
Foundation.
Salim Nathoo
Director, IGATE Corporation
Salim Nathoo is a Partner and Co-Head of the Global Telecom and Technology team at Apax
Partners LLP, London, having joined Apax in 1999. His deal experience includes Sophos
Limited, a leading security software provider, Weather Investments S.p.A., a holding of
European, African and Asian telecom assets, Tim Hellas Telecommunications S.A., a Greek
mobile operator, SMART Technologies Inc., a leading provider of interactive collaboration
technologies, Promethean World Plc,a leading provider of education technology solutions,
Inmarsat Group Holdings Limited, a leading mobile satellite communications provider, and
Mobifon S.A., a leading Romanian mobile operator.
Prior to joining Apax Partners, Salim spent four years at McKinsey & Co. where he mainly
served clients in the telecom industry. He has also held sales and marketing and technical
positions at NYNEX Cablecomms Limited and IBM Corporation respectively.
Salim currently serves on the Boards of SMART Technologies, where he is a member of the
audit committee, Weather Investments and Sophos.
15
Salim holds an MBA from INSEAD and an MA in Mathematics from St. John's College,
Cambridge University.
Naomi O. Seligman
Director, IGATE Corporation
Naomi O. Seligman has been a senior partner at Ostriker von Simson, a consulting firm focusing
on information technology, since June 1999. The partners of Ostriker von Simson chair the CIO
Strategy Exchange, which regularly brings together four vital quadrants of the information
technology sector: chief information officers, or CIOs, venture capitalists, CEOs from computer
companies, and entrepreneurs. Previously, Naomi Seligman served as a co-founder and senior
partner of the Research Board, Inc., a private sector institution sponsored by one hundred CIOs
from major corporations.
Naomi Seligman graduated from Vassar College in the United States with a degree in
Economics. She later received a Master's of Business Administration from the London School of
Economics. Naomi Seligman presently serves on the boards of directors of Oracle Corporation
and Akamai Technologies, Inc., both enterprise software companies, and The Dun & Bradstreet
Corporation, a provider of business information services. She also previously served as a director
of Sun Microsystems, Inc. prior to its acquisition by Oracle.
16
William G. Parrett
Director, IGATE Corporation
William G. Parrett was a Senior Partner of Deloitte & Touche USA LLP, a public accounting
firm and retired in 2007. From 2003 to May 2007, he served as the Chief Executive Officer of
Deloitte Touche Tohmatsu (DTT). He was a Managing Partner of Deloitte & Touche USA from
1999 to 2003, and served in a series of roles of increasing responsibility since he joined Deloitte
in 1967.
William has extensive experience in corporate finance, strategic planning and management of
international operations, and is highly skilled in the fields of auditing, accounting, internal
controls and risk management. William also has significant knowledge in the areas of executive
compensation and corporate governance.
William presently serves as an independent Director and Audit Committee Chairperson for The
Blackstone Group LP, Thermo Fisher Scientific, UBS AG, and the Eastman Kodak Company. He
is a member of the Board of Trustees of Carnegie Hall and Boards of Directors of the Committee
on Capital Markets Regulation, and United States Council for International Business. He is the
past Chairman of the United States Council for International Business and member of the
Executive Committee of the International Chamber of Commerce, and past Chairman of the
Board of Trustees of United Way of America.
17
18
Merging
After the acquisition of Patni Computer Systems in 2011, it started the merging process and
changed its name to iGATE Patni. It was changed to IGATE again on 7 May 2012.
19
INTERPEITATION
Type
Traded as
Industry
Founded
Public company
NASDAQ: IGTE
IT services, BPO
1996
Headquarters
Area served
Key people
Services
20
UNIT 2
ORGANISATION
21
Global Headquarter
IGATE Corporation
100 Somerset Corporate blvd.,
Bridgewater, NJ 08807,
USA
Tel. +1 9082198050
Fax.+1 9082198050
India Headquarter
22
IGATE Management
Services Pvt. Ltd.
Plot No: 158-162P & 165-170P
EPIP Phase II, Whitefield
Bengaluru 560066
Karnataka
India
Tel.: +91 80 4104 0000
+91 80 4104 0000
Fax: +91 80 4125 9090
23
Satisfaction score. The bottom line result of these activities is sustained improvement in schedule
and quality indicators. iGATE is to be congratulated for their achievement in satisfying the
requirements for Level 5," said Edward Weller, an SEI Authorized High Maturity Lead Appraiser
from Integrated Productivity Solutions. Phaneesh Murthy, CEO, iGATE said, "Achieving a
Maturity Level 5 rating on the CMMI v1.2 is a key milestone in the quality journey we have
been on during the past three years and reinforces iGATE's ongoing commitment to excellence.
This achievement is testimony to the quality and value we bring to our customers in terms of
management by metrics, predictive performance, strong requirements management, defect
reduction and lower cost of ownership." Ravi Mani, Vice President and Head - Organizational
Excellence, iGATE said, "iGATE's Quality Management System is based on and integrated with
industry standards, models and methodologies such as CMMI, ISO 9001, ISO 27000, Six Sigma
and Lean. To that base, iGATE has incorporated its own proprietary improvement frameworks
including our 'Small Steps' initiative. By involving employees at all levels and by applying these
models and frameworks, we have created an environment of continual process improvements at
iGATE.
25
INTERPEITATION
Global Headquarter
India Headquarter
Indian Delivery Centers
IGATE certification
26
UNIT 3
MARKET
3.1 Major Customers
We are one of Canada's largest banks and one of the largest banks in the world,
based on market capitalization.
We employ approximately 79,000 full- and part-time employees who serve more
than 16 million personal, business, public sector and institutional clients through
offices in Canada, the U.S. and 40 other countries.
General Electric
GE Healthcare is a subsidiary of General Electric (GE), headquartered in Little
Chalfont, Buckinghamshire, United Kingdom. Employing more than 46,000
people worldwide. GE Healthcare is the first GE business segment to be
headquartered outside the United States. Formerly named GE Medical Systems, in
2004, just before the acquisition of U.K. based Habersham plc, the company was
renamed to GE Healthcare.
27
State Farm
State Farm is a group of insurance and financial services companies in the United
States. The company also has operations in Canada.
The group's main business is State Farm Mutual Automobile Insurance Company,
a mutual insurance firm that also owns the other State Farm companies. The
corporate headquarters are in Bloomington, Illinois.
State Farm is ranked 44th in the 2013 Fortune 500, which lists American
companies by revenue.
Toshiba
Toshiba Medical Systems Corporation, a part of the Toshiba Corporation
headquartered in Tokyo, Japan. Toshiba was the first in Japan to begin research on
X-ray tubes in 1914, and has continued to be a national leader in diagnostic
imaging equipment, being the first to introduce many products, including MRI
and helical CT. [2]
Toshiba Medical Systems are, since late 2012, the Official Medical Systems
Partner of Manchester United FC as per a multi-million 5-year contract.
28
MacDonalds
The McDonald's Corporation is the world's largest chain of hamburger fast food
restaurants, serving around 68 million customers daily in 119 countries across
35,000 outlets. Headquartered in the United States, the company began in 1940 as
a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they
reorganized their business as a hamburger stand using production line principles.
Businessman Ray Kroc joined the company as a franchise agent in 1955. He
subsequently purchased the chain from the McDonald brothers and oversaw its
worldwide growth.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the
corporation itself. McDonald's Corporation revenues come from the rent,
royalties, and fees paid by the franchisees, as well as sales in company-operated
restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5
billion, and profits of $5.5 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries,
breakfast items, soft drinks, milkshakes, and desserts. In response to changing
consumer tastes, the company has expanded its menu to include salads, fish,
wraps, smoothies, fruit, and seasoned fries.
MetLife
Around the world, the MetLife companies offer insurance, retirement and savings
products. We work directly with customers as well as offer our products through
agents, third party distributors, and brokers. We provide: Flexible insurance
options to protect you and your family.
Life Insurance Maintain your familys standard of living no matter what the
future holds. Our life insurance products help take care of whats most important,
29
30
Banking
Financial services
Healthcare
Life Sciences
Insurance
Manufacturing
Product & Engineering Solutions
Retail
Consumer Packaged Goods
Communications
Energy
Utility
Media & Entertainment
Application Development
Application Management
Business Intelligence & Data Warehousing
Business Process Outsourcing
Cloud Services
Engineering Design Services
Enterprise Application Solutions
Enterprise Mobility
Infrastructure Management Services
P&ES Embedded Systems
Product Verification & Validation
Verification and Validation
3.4 LOGO
31
SLOGAN
SPEED. AGILITY. IMAGINATION
32
INTERPEITATION
Major Customers
Industries in which iGATE provides services
Services provided by IGATE
Logo
Slogan
33
Unit 4
FINANCIALS
REVENUE IN $
1400000
1200000
1000000
800000
600000
400000
200000
0
2009
2010
2011
REVENUE IN $
34
2012
2013
404.20
0.00(0.00%)Delisted
Open : 399.00
High :
415.00
Low :
399.00
:
Scrip ID
: IGATE
Group /
Index
: A
Listing Information
Face Value4.0
Market Lot Of Equity Shares1
BSE Code532337
BSE GroupN.A.
The company forms a part of following indices Listed On
Cochin Stock Exchange Ltd.
National Stock Exchange of India Ltd.
The Stock Exchange, Mumbai
Mar
Jul
Jun/Jul
Listing Information
Face Value Of Equity Shares
Market Lot Of Equity Shares
4
1
35
INE177B0101 Industr
6
BSE Code
NSE Code
BSE Group
532337
0
A
No
No
No
No
No
No
No
Listing On
Listed On
36
Holder's Name
No of Shares
% Share Holding
5100
0.02%
29681581
93.44%
1110023
3.49%
Foreign Institutions
637798
2.01%
Other Companies
161337
0.51%
Foreign NRI
142730
0.45%
19233
0.06%
7343
0.02
Directors
Foreign Promoter
General Public
Others
Foreign Industries
37
4.4 AUDITORS
iGATE Names PricewaterhouseCoopers LLP as Independent Auditors
PITTSBURGH, June 14 /PRNewswire-First Call/ -- iGATE Corporation (Nasdaq: IGTE) today
announced that it has appointed PricewaterhouseCoopers LLP as its independent auditors.
PricewaterhouseCoopers
will
replace
Arthur
http://www.newscom.com/cgi-bin/prnh/20010110/IGTELOG
Andersen
)
The
LLP.
decision
(Photo:
to
select
second quarter earnings report and position PricewaterhouseCoopers to issue a timely audit
report on the company's financials for the fiscal year ending December 31, 2002. We look
forward to working with PricewaterhouseCoopers in its new role as our independent auditor."
Mar'07
Mar'06
Mar'05
Mar'04
12Months
INCOME:
Sales Turnover
781.51
747.27
563.48
431.65
416.24
.00
.00
.00
.00
.00
NET SALES
781.51
747.27
563.48
431.65
416.24
Other Income
786.64
750.04
566.75
434.97
422.82
Excise Duty
TOTAL
INCOME
39
EXPENDITURE:
Manufacturing Expenses
Material Consumed
Personal Expenses
Selling Expenses
Administrative Expenses
17.81
13.85
8.91
19.19
9.75
.00
.00
.00
.00
.00
289.35
15.58
9.92
3.39
2.38
3.10
95.04
95.69
Expenses Capitalised
.00
.00
.00
.00
.00
Provisions Made
.00
.00
.00
.00
.00
TOTAL EXPENDITURE
397.88
Operating Profit
126.74
89.75
53.94
31.58
18.36
EBITDA
131.86
92.52
57.20
34.90
24.94
38.72
37.70
33.52
19.97
15.70
.00
.00
.00
.00
.00
93.14
54.82
23.69
14.93
9.23
1.57
2.83
2.64
1.71
.42
EBT
91.57
51.99
21.05
13.22
8.81
Taxes
2.77
2.25
2.93
1.54
1.62
88.80
49.73
18.12
11.68
7.19
-2.31
-9.53 -90.31
15.45
-2.11
Depreciation
Other Write-offs
EBIT
Interest
40
.63
.94
-.61
-.40
-.29
Other Adjustments
13.10
6.98
88.05
.40
.29
REPORTED PAT
100.23
48.13
15.25
27.12
5.08
Preference Dividend
.00
.00
.00
.00
.00
Equity Dividend
.00
7.59
3.73
1.76
1.66
.00
60.00
30.00
15.00
15.14
273.26
KEY ITEMS
31.41
15.22
41
4.91
9.26
1.86
INTERPEITATION
IGATE FINANCIAL STATEMENTS OF 5 YEARS
MARKET CAP,FACE VALUE,P/E RATIO OF IGATE
PROFIT AND LOSS A/C
42
Unit 5
GOVERNANCE
5.1 PHILASOPHY
This excerpt taken from the IGTE DEF 14A filed Mar 13, 2009.
Compensation Philosophy
The Compensation Committee has adopted a compensation philosophy with respect to the
named executive officers of the Company that is intended to align compensation with the
Companys overall business strategy. The philosophy guiding the executive compensation
program is designed to link executive compensation to shareholder value in order to attract,
retain and motivate high quality employees capable of maximizing shareholder value. The goals
are:
To compensate executive employees in a manner that aligns the employees interests with
the interests of the shareholders;
In January, US-based iGate-led consortium had clinched a deal to buy nearly 63 per cent stake in
India's sixth largest IT firm Patni Computer Systems for about USD 921 million (Rs 4,188 crore)
after several rounds of negotiations.
The deal size, however, will go up to about USD 1.22 billion, after the acquisition of 20 per cent
from public shareholders at the same price of Rs 503.50 a share through the mandatory open
offer. The aggregate price for the shares to be purchased in the open offer, assuming full tender,
is estimated at USD 301 million.
Under the deal, iGate, in a consortium with private equity firm Apax Partners, will buy the entire
45.6 per cent stake of Patni brothers, Narendra Patni, Ashok Patni and Gajendra Patni, along with
General Atlantic's 17.4 per cent holding.
Interestingly, as per the public announcement, the manager to the offer - Kotak Mahindra Capital
on behalf of Pan-Asia iGate Solutions and iGate Global Solutions and iGate Corporation
(Acquirer) - had said that depending upon the response to this offer, the acquirers may exercise
the option of delisting the shares of the target company after the completion of the offer
following the procedure stipulated under Sebi (Delisting of Equity Shares) Regulations, 2009.
According to a merchant banker, the insertion that the acquirer wants to delist the company is
unusual. "It shows that there was a clear intent of delisting the company post the open offer after
meeting the regulatory requirements," he added. The open offer by the iGate was supposed to
open on March 4 and was to close on March 23. However, due to pending documentation it was
not yet approved by the regulator.
5.3 SCAMS
Why iGate is right on sacking CEO Phaneesh Murthy
Nasdaq-listed iGate has sacked Phaneesh Murthy, its president and CEO, after investigating
charges of sexual harassment levelled against him by a subordinate employee. This is the second
time in 11 years that Murthy has been sacked from a company after facing harassment charges.
45
In 2002, he was fired from Infosys' US operations on similar charges; Infy settled out of court for
$3 million. Murthy says he is innocent and the charges are "extortion".
The matter could go to court. Sexual harassment is a serious crime, and no company can afford
to stick with employees accused of it. Therefore, iGate's decision to fire Murthy after an
investigation is welcome.
It shows that the company is keen to shield its shareholders from any negative spillovers from
the charges levelled at Murthy. Instead of protecting star CEOs, it is more important to protect
shareholder interests.
More Indian companies and institutions should follow the same course. In India, it is
commonplace for people to check all the procedural boxes without actually doing anything about
transgressions.
Swept under the carpet, scandals and scams come to light only by accident and then make
headlines for months. Sexual harassment is a crime that will not go away through either silent
suffering on the part of women employees or suppression of protest in the name of company
reputation.
In fact, companies will enhance their reputation by taking firm, consistent action to enforce the
policies most have already put in place. Even if that means seeing off a star performer like the
iGate CEO.
Democracy is not just about queuing up to vote once in five years. Hierarchies within
organisations are meant only to effectively coordinate work, not to bring personal lives within
the distribution of power implicit in a functional hierarchy.
Law firm Aiman-Smith & Marcy presented the employee's version of the
"facts" of the case
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A California law firm said on Thursday it is representing an employee of iGate with respect to
her claims for sex harassment against Phaneesh Murthy and iGate.
Presenting her version of the facts of the case, Aiman-Smith & Marcy said Mr. Murthy had
pressured her to abort her pregnancy caused by him.
When he discovered this [the pregnancy], Mr. Murthy pressured [her] to have an abortion.
When she refused, he told her to leave the company, quietly, to protect his position as CEO, the
law firm said in a statement issued from Oakland.
Mr. Murthy was removed from his position of CEO and President on Monday for his failure to
report his relationship with the subordinate employee. However, iGate, a company based in the
United States, said it found no merit in the complaint of sexual harassment made by the
employee.
Californias Fair Employment and Housing Act prohibits discrimination on the basis of sex,
which includes discrimination on the basis of pregnancy, and prohibits harassment on the basis
of sex, which includes conditioning any form of employment benefit on a sexual relationship,
the law firm said. It had previously represented [two other women] in sex harassment lawsuits
against Mr. Murthy for his actions while employed at Infosys, the law firm, which is based in
the same state as iGate, said.
The firm said its client-interface, Head of Investor Relations at iGate, was on medical leave. The
firm had a different take on Mr. Murthys contention, as articulated by him on Tuesday, that she
did not report to him but to the Chief Financial Officer. Although her nominal supervisor was
iGate CFO Sujit Sircar, the fact that he was based in India meant that Mr. Murthy was her day
to day supervisor at iGates headquarters in Fremont.
In his role as [her] supervisor, Mr. Murthy, as he had with his previous victims, insinuated
himself into [her] personal life using the pretext of business necessity, the firm alleged. Mr.
Murthy was able to induce [the woman] into behaviour and action that she would have found
unthinkable at the beginning of her employment. Further, Mr. Murthy was able to pursue the
abusive and harassing actions because he was [her] employer.
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The CEO of any company, as Mr. Murthy was here, has tremendous economic and personal
power over his subordinates, it added.
[She] was dependent on her continued employment for her basic living expenses and, further,
Mr. Murthy conditioned her further employment and career advancement opportunities on her
entering into a relationship with him which, eventually and reluctantly, she did, it added. When
she attempted to extricate herself from the relationship, he reduced her responsibilities,
threatened her continued employment, and pressured her to continue the relationship.
Citing provisions of California law, the firm said: Under California law, because Mr. Murthy
was an officer and director of iGate, his actions were the actions of iGate, and iGate, too, is liable
for the acts of Mr. Murthy. There remains the question of whether, given Mr. Murthys history of
predatory actions toward female employees, iGate did all that it should have done to oversee and
control Mr. Murthy and to provide some method for women at iGate to report his actions.
The law firm termed as a a lie Mr. Murthys claim that his relationship with her lasted a few
months, and contended that Mr. Murthy began pursuing [her] shortly after her employment
began in 2010.
The firm said it was in communication with iGates legal representatives. It said iGates
statement that its own investigation into the charges made by Mr. Murthys subordinate remains
ongoing, it would refrain from commenting on the companys separate role in this matter.
However, referring to iGates statement absolving Mr. Murthy of the charge of sexual
harassment, the law firm said legally the employer is liable for the conduct of its CEO, and
that we hope... iGate will take appropriate responsibility in this matter.
On Mr. Murthys claim that he had informed the board of his relationship, the firm said he did so
only after the complainant told him that she would seek legal representation.
It termed as defamatory and a despicable Mr. Murthys charge that the harassment charges
were an attempt at extortion. The charge amounts to an attempt to blame the victim, who only
wants to somehow continue her career and support her child.
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Randall B. Aiman-Smith heads the firm, which specialises in employment and consumer matters
and in class action lawsuits.
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IGATE was ranked No.2 in the Best Employer Survey in Greater Toronto Area
conducted by Aon Hewitt in collaboration with Queens University, Canada.
IGATE was awarded the prestigious Golden Peacock Innovation Management Award for
the year 2012 in the Information Technology category.
IGATE was ranked No. 3 in Zinnovs Global R&D Service Providers 2012 and
consecutively the undisputed sectoral leader in the Healthcare industry. We were at an
overall level adjudged in the Leader Zone. The annual study undertaken by Zinnov,
filters the top 75 R&D service providers, across various geographies like India, China,
Russia and Eastern Europe, and 10 major industry verticals, to conduct a comprehensive
analysis of the top global R&D service providers.
IGATE won the World Class Award, the highest achievement under the Large Service
Organizations category, at the Global Performance Excellence Awards 2012 (GPEA).
The GPEA is the only international, formal recognition of performance and business
excellence for organizations across the world. IGATE competed with 55 organizations
from eight countries to emerge the winners in the World Class category.
INTERPEITATION
Compensation Philosophy
Action taken by SEBI
CRISIL RATINGS
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Awards to IGate
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