Infosys Announces Record Rs 18,000 Crore Share Buyback at 19% Premium

BENGALURU — Infosys, India’s second-largest IT services company, has announced its biggest-ever share buyback worth Rs 18,000 crore, offering shareholders a 19% premium over the current market price. The move is aimed at boosting investor confidence and returning value to shareholders amid global economic uncertainties.

Details of the Buyback

Infosys stated that the buyback will be conducted via the tender offer route, where shareholders can tender their shares at a fixed price determined by the company.

• Total Buyback Size: Rs 18,000 crore

• Premium Offered: 19% above the stock’s closing price

• Mode of Buyback: Tender offer

This marks the largest capital return program in Infosys’ history and signals strong financial health despite global headwinds in the IT sector.

Why Infosys is Doing This

The share buyback comes at a time when the IT industry is facing sluggish demand and margin pressures due to global macroeconomic challenges. By repurchasing shares, Infosys aims to:

1. Boost earnings per share (EPS) by reducing the number of outstanding shares.

2. Enhance investor confidence through capital return.

3. Signal strong fundamentals and future growth prospects.

Infosys CEO and MD Salil Parekh said the buyback reflects the company’s commitment to creating long-term shareholder value and its confidence in the business strategy going forward.

NATO Activates Article 4 After Russian

Also Read: Sensex Gains 123 Points to Close at 81,548; Nifty Ends Above 25,000 on Buying in Energy and FMCG Stocks

Market Reaction

Following the announcement, Infosys shares surged in early trading, reflecting positive investor sentiment. Analysts noted that the 19% premium is higher than expected, making it attractive for both institutional and retail shareholders.

Analyst Viewpoint

Market experts believe this move will:

• Strengthen Infosys’ stock performance in the near term.

• Provide a support level for share prices amid market volatility.

• Indicate the company’s cash-rich position and prudent capital management strategy.

However, they also caution that global IT spending remains under pressure, which could impact revenue growth in the coming quarters.

Historical Context

This is not Infosys’ first buyback, but it significantly exceeds previous programs. In past buybacks, the company focused on returning excess cash to investors while maintaining reserves for future acquisitions and investments.

Looking Ahead

With this buyback, Infosys joins other top Indian IT companies like TCS and Wipro, which have also executed similar programs in recent years.

Investors will be closely watching Infosys’ quarterly results and future guidance to see how the buyback influences its overall financial performance.

Infosys’ Rs 18,000 crore buyback sends a clear message of stability and confidence, positioning the company to navigate challenges while rewarding its shareholders generously.