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India’s second-largest IT services firm, Infosys, on September 11 approved a share buyback worth Rs 18,000 crore; Key details for investors
Infosys Share Buyback (File Photo)
Infosys Share Buyback: India’s second-largest IT services firm, Infosys, on September 11 approved a share buyback worth Rs 18,000 crore at a price of Rs 1,800 per share, the company said in a statement.
The buyback price represents a 19% premium to Thursday’s closing levels of Rs 1,509.50 on the BSE and Rs 1,512.20 on the NSE, where the stock ended more than 1% lower than the previous session. The programme accounts for 2.41% of Infosys’ equity capital and does not exceed 25% of the aggregate paid-up capital, according to the filing.
Backed by strong financials, Infosys reported cash and cash equivalents of over Rs 42,000 crore and free cash flow of more than Rs 20,000 crore in FY25, providing ample liquidity for shareholder payouts. The buyback will be funded from free reserves, in line with its capital allocation framework of returning 85% of free cash flow over five years through dividends and share repurchases.
The latest buyback is nearly double the Rs 9,300 crore programme of October 2022, when shares were repurchased via the open market route at a maximum price of Rs 1,850 apiece. Earlier buybacks included Rs 8,260 crore in 2019 and Rs 13,000 crore in 2017.
This time, Infosys will conduct the buyback via the tender offer route, under which a company invites shareholders to sell a fixed number of shares at a premium price within a defined period. The board of directors approved the proposal late Thursday evening, and the plan now awaits shareholder approval through a special resolution. Promoters currently hold a 13.05% stake in Infosys.
Market experts say the timing of the buyback could provide crucial support to the stock, which has been under pressure amid weak global IT demand. Since Infosys first disclosed its buyback plan on September 8, its share price has already risen 7%. Analysts expect the repurchase to improve return ratios and earnings per share by shrinking the equity base while offering near-term stability.
Infosys now joins peers TCS and Wipro, which together have spent over Rs 1 lakh crore on share repurchases in the past decade. The buyback will be open to all equity shareholders as of the record date, to be announced later, and executed on a proportionate basis.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 12, 2025, 07:35 IST
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