In a striking revelation, Infosys founder NR Narayana Murthy has disclosed that IIT-Kanpur missed out on a potential windfall of ₹2,000 crore in Infosys shares due to outdated government regulations that barred educational institutions from accepting equity-based donations.
A Missed Opportunity for Long-Term Capital Growth
Over two decades ago, Murthy offered to donate ₹8 crore worth of Infosys shares to his alma mater, IIT-Kanpur, to support its long-term capital needs. However, the central government’s refusal to allow institutions to hold equity assets blocked the donation.
“If they had accepted the shares and simply held on to them, today they would be worth ₹2,000 crore,” Murthy told Moneycontrol in an exclusive interview.
He added that the dividends alone could have generated ₹500 crore over the past eight years, highlighting the massive financial impact of the missed opportunity.
IISc Faced Similar Fate, Says Murthy
Murthy also cited a similar case involving the Indian Institute of Science (IISc), where a donation attempt by his wife Sudha Murthy was blocked on the same grounds. According to Murthy, had these equity gifts been accepted and retained, their cumulative value today would exceed ₹15,000–16,000 crore.
Call for Policy Reform in Higher Education Funding
Murthy criticized India’s regulatory framework, which restricts educational institutions to low-yield fixed deposits, unlike Western universities that benefit from multi-billion-dollar endowments.
To address this, his family office Catamaran Ventures has launched a merit-based scholarship at IIM Ahmedabad, funded through a mix of equity index and fixed-income investments, ensuring inflation-protected support for top MBA students for the next 20 years.
