The stock of IT services giant, Infosys, climbed nearly 4 per cent on Wednesday after the firm said its opening its largest-ever share buyback programme worth ₹18,000 crore for subscription on Thursday.
The share buyback programme will close on November 26, according to a regulatory filing.
Shares of the firm rallied 3.74 per cent to settle at ₹1,541.25 on the BSE. During the day, the stock jumped 3.85 per cent to ₹1,542.85. At the NSE, the stock went up 3.74 per cent to ₹1,542.
The company’s market valuation surged ₹23,098.48 crore to ₹6,40,297.11 crore.
The company aims to buy back 10 crore fully paid-up equity shares of a face value of ₹5 each, representing up to 2.41 per cent of the total paid-up equity share capital, at ₹1,800 per share.
Infosys intends to steadily increase its annual dividend per share (excluding any special dividends). The buyback is anticipated to enhance shareholder value over the long term by reducing the equity base.
“The eligible shareholders can tender their equity shares during the tendering period, i.e. from November 20, 2025, to November 26, 2025. The buyback is being undertaken by the company after taking into account the strategic and operational cash needs of the company in the medium term and for returning surplus funds to the shareholders in an effective and efficient manner in line with its capital allocation policy,” Infosys said in a regulatory filing.
Also Read: Infosys promoters opt out of ₹18,000-crore share buyback
The buyback is divided into two categories: reserved (small shareholders) and the general category. The reservation for small shareholders will be 15 per cent of the number of equity shares that the company proposes to buy back, or their entitlement, whichever is higher.
A small shareholder is someone who holds equity shares having a market value of not more than ₹2,00,000, as on the record date.
There are 25,85,684 small shareholders of Infosys.
The company had announced its first share buyback programme in 2017. At that time, it had purchased 11.3 crore shares, or up to 4.92 per cent of the paid-up equity share capital of the company, for ₹1,150 per equity share, amounting to around ₹13,000 crore.
The second buyback was worth ₹8,260 crore in 2019, the third was ₹9,200 crore.
In 2022, the Bengaluru-headquartered company had announced its last share buyback of ₹9,300 crore via an open market route for a maximum price of ₹1,850 per equity share.
Meanwhile, Infosys promoters and promoter group, including Nandan M Nilekani and Sudha Murty, have decided not to participate in the buyback.
The promoters collectively hold 13.05 per cent of the company’s equity as on the buyback announcement date.
“Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85 per cent of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/special dividends, subject to applicable laws and requisite approvals, if any,” according to the company’s stated Capital Allocation Policy.
Follow us
