- | 11:25 am
Infosys readies about $2 billion share buyback
The board cleared the plan to repurchase as many as 100 million equity shares, representing 2.41% of paid-up capital
Infosys Ltd has approved a share buyback of up to ₹18,000 crore (about $2 billion), the largest in its history, as the Bengaluru-based IT services company looks to support its stock after a steep decline this year.
The board cleared the plan on Thursday, 11 September, to repurchase as many as 100 million equity shares, representing 2.41% of paid-up capital, at a price of ₹1,800 apiece through the tender offer route.
The buyback remains subject to shareholder approval via postal ballot.
On Friday, Infosys told the exchanges that it had secured exemptive relief from the US Securities and Exchange Commission, enabling holders of its American Depositary Shares (ADS) to participate by cancelling ADSs and tendering the underlying equity shares.
The company said a record date and full details of the offer would be announced later.
Infosys shares, which have fallen nearly 19% this year amid weak demand and muted deal momentum, rose on the announcement.
On Friday, the stock gained as much as 2.06% in intraday trade to ₹1,540.80 on the NSE, before paring some of the gains, compared with Thursday’s close of ₹1,509.50.
The move comes as India’s top IT firms struggle with declining valuations.
Shares of Tata Consultancy Services Ltd have dropped about 24% this year and those of Wipro nearly 16%, fueling expectations that they too may turn to buybacks to shore up sentiment.
Analysts said such programs signal confidence in a company’s fundamentals and offer investors a floor against further downside.
For Infosys, the buyback size is within the 25% limit of paid-up capital and free reserves permitted under Indian law.
The company last carried out a buyback in 2022, repurchasing shares worth ₹9,300 crore.
More Top Stories:
