Infosys Share Buyback Opens Today: Eligibility, Price and Key Timelines to Know

Infosys is set to commence its ₹18,000-crore share buyback today, following shareholder approval earlier this month.

The programme allows the company to repurchase a defined number of equity shares at a fixed price, offering eligible investors an opportunity to tender their holdings.

With the offer closing on 26 November, shareholders can review the specifics before participating.

Infosys Buyback Size and Structure

Infosys plans to repurchase up to 10 crore fully paid equity shares through the tender route, representing about 2.41% of its total equity capital. 

The buyback received approval on 6 November, with eligibility determined by shareholding as of the record date, 14 November. 

Kotak Mahindra Capital Company will oversee the issue, while KFin Technologies will serve as the registrar.

Infosys Buyback Price and Premium

The company has fixed the buyback price at ₹1,800 per share. This valuation reflects a premium compared with the price at which the offer was announced, and it also stands above the stock’s recent closing levels. Investors choosing to tender may consider the difference between the buyback price and current market value.

Infosys Promoter Participation in Buyback

Infosys’ promoter group, including founders Narayan Murthy, Nandan Nilekani, and Sudha Murty, will not be tendering their shares. The absence of promoter participation means the buyback will rely entirely on public shareholders.

Effect on Shareholding Pattern

If the offer receives full subscription, the promoter group’s overall stake is expected to rise to around 13.37%, due to the reduced number of outstanding shares. 

Retail shareholding, in turn, may decline marginally to approximately 86.63%. Such adjustments could influence the distribution of voting rights across different shareholder categories.

Shareholder Approval and Entitlement Ratios

The proposal secured significant support from shareholders, with nearly 98.81% voting in favour. The entitlement ratio for the reserved category has been set at 2:11, meaning two shares for every eleven held.

For the general category, the ratio stands at 17:706, determining the minimum number of shares accepted if the buyback is fully subscribed.

Infosys’ Previous Buybacks

This initiative marks the company’s fourth buyback since 2017. Earlier programmes were executed in 2017 (₹13,000 crore), 2019 (₹8,260 crore), and 2022 (₹9,300 crore), reflecting the company’s ongoing use of buybacks as a capital allocation approach.

Read More: Infosys Launches AI-First GCC Model to Help Enterprises Modernise Global Capability Centres.

Conclusion

Infosys’ latest buyback provides eligible investors with an optional route to tender their shares at a predetermined price. While the offer may create short-term opportunities for some shareholders, the decision to participate should align with individual financial priorities and expectations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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