Infosys Unleashes Rs 18,000 Crore Share Buyback Bonanza for Shareholders!

Bengaluru, India – In a significant move set to delight its investors, the board of India's leading IT services giant, Infosys, has officially given its nod to an ambitious share buyback proposal worth a staggering Rs 18,000 crore. This latest initiative, a testament to the company's robust financial health and commitment to shareholder returns, marks Infosys's fourth major buyback in just six years.

The approved buyback will be executed through the open market route, a method favored for its flexibility.

Infosys plans to acquire up to 6.67 crore equity shares, or 1.83 percent of its total paid-up equity capital, at a maximum price of Rs 1,850 per share. This strategic financial maneuver is aimed at enhancing shareholder value by improving key metrics such as earnings per share (EPS) and optimizing the company’s capital structure.

While the board has given its green light, the proposal still requires the final approval of shareholders, which will be sought through a postal ballot.

The record date for determining eligible shareholders for the buyback will be announced in due course, keeping investors on the edge of their seats for further updates.

This isn't Infosys's first rodeo when it comes to returning capital to shareholders through buybacks. The company has a consistent track record, having executed three prior buyback programs: Rs 13,000 crore in 2017 (via tender offer), Rs 8,260 crore in 2019 (open market), and Rs 9,200 crore in 2021 (open market).

Each of these initiatives underscored the company's philosophy of sharing its success directly with its equity holders.

The current Rs 18,000 crore buyback far surpasses the previous ones in sheer scale, signalling a strong vote of confidence from the management in the company's future prospects and its ability to generate significant free cash flow.

Such a substantial buyback typically signals to the market that the management believes its shares are undervalued and is keen to consolidate ownership, potentially leading to a positive sentiment among investors and an upward trend in share price.

Investors and market analysts will be closely watching the execution of this buyback.

It's a clear indication of Infosys's unwavering focus on capital efficiency and delivering sustained long-term value to its stakeholders. As the IT sector continues to evolve, Infosys's proactive financial strategies are setting a benchmark for corporate governance and shareholder engagement.