Infosys has announced its largest share buyback programme and approved up to Rs. 18,000 crore to be spent on repurchasing the shares. According to the proposal, it will buy back up to 10 crore shares, which is approximately 2.41% of its paid-up equity share capital.
It has fixed the buyback price at Rs. 1,800 apiece, a premium of about 18-19 percent over the market price at which it announced the program. This reflects the firm's strong financial position and its belief that the shares are undervalued.
The record date of the buyback is fixed as Friday, 14 November 2025. Therefore, shareholders who hold Infosys shares in their demat accounts as of the business's closing date would be eligible to participate in the buyback.
India's T+1 settlement cycle: Shares purchased on the record date itself will not qualify; therefore, interested investors must ensure they acquire their shares by November 13. The buyback is being done through the tender offer route, where eligible shareholders can offer their shares for repurchase to the company.
The promoters and promoter group, which include founders such as N. R. Narayana Murthy and Nandan Nilekani, have opted out of the buyback. In the event of a full buyback subscription, promoter shareholding could increase marginally, as public shareholding would decrease correspondingly.
Even though investors will be given the chance to sell their stocks at a higher price, the proceeds from the buyback are considered as a ‘deemed dividend’ according to the taxation rules, which might lower the net gains for shareholders falling in high-tax brackets.
The buyback is for only a very tiny portion of the shares; it is possible that not all shares offered will be taken, and the actual participation will rely on the acceptance ratio. Investors must weigh whether to tender shares for the immediate premium or continue holding for long-term growth.
While buybacks can support share prices due to reduced outstanding shares and higher earnings per share, broader market conditions and the company's prospects must guide decisions.
New purchasers seeking to participate in this must act before 13 November to be eligible. The Rs. 18,000 crore buyback by Infosys is indeed a big corporate announcement, exuding confidence in the inherent value of the company.
For existing shareholders, there is a dilemma between the short-term premium and staying invested. Meanwhile, potential investors have time to consider tax implications and assess overall market conditions before making a decision.