Infosys Buyback History: How Has the Stock Reacted Over the Years?

Infosys is preparing for its biggest-ever share buyback worth ₹18,000 crore. The move comes at a time when the stock is trading near a six-month low, despite a brief recovery after the board approved the programme in September. With global tech companies focusing heavily on AI investments, Infosys’ buyback has renewed attention on how the stock has behaved after such announcements in the past.

Below is a look at the company’s four major buybacks since 2017 and how the share price responded in the short and medium term.

Understanding Infosys Buyback History

Infosys has carried out 4 buybacks in the last 8 years. Its first buyback came in 2017, involving more than 113 million shares. Subsequent programmes were announced in 2019, 2021 and 2022, with varying market reactions.

1. 2017 Buyback (₹13,000 crore)

The stock fell sharply after the August 2017 announcement, ending the month lower by about 10% and slipping further the next month. However, the weakness did not last long. Over the next year, the stock closed in the green for 11 out of 12 months, giving strong medium-term gains.

2. 2019 Buyback (₹8,260 crore)

This buyback delivered one of the best near-term performances. The stock jumped over 13% in the first month and continued to rise in the following quarters, eventually touching a fresh all-time high.

3. 2021 Buyback (₹9,200 crore)

The stock dipped slightly in April 2021, falling around 1% in the first month. But it soon regained strength, posting gains in six of the next eight months. The medium-term trend remained positive despite initial weakness.

4. 2022 Buyback (₹9,300 crore)

The October 2022 programme began with strong gains, recording nearly 9% growth in the first month and over 6% growth in November. But after the initial rise, the stock went into a six-month decline.

How Much Did Infosys Buybacks Cost the Company?

Across these 4 buybacks, Infosys paid an average premium of more than 24.5% over the prevailing market price. The highest premium was in 2022 at around 30%.

Overall, the company has spent nearly ₹40,000 crore on buybacks since 2017, with the largest previous programme being the 2017 buyback.

Key Details of Latest Infosys Buyback

The ongoing ₹18,000 crore buyback will involve up to 10 crore equity shares at a price of ₹1,800 each, representing 2.41% of the company’s equity capital. The buyback will take place through the tender offer route on both NSE and BSE, with 15% of the quota reserved for small investors. The promoters have chosen not to participate.

Read more: Infosys Buyback: How Much Tax Will You Pay on The Buyback Amount?

Conclusion

Infosys’ buyback history shows that short-term stock reactions vary widely. Some buybacks have been followed by immediate gains, while others saw temporary declines. However, medium-term trends have generally been positive, especially when backed by strong business performance. With the latest and largest buyback on the way, investors will be watching closely to see whether the stock can regain momentum once the record date is announced.

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