Infosys share buyback: IT giant’s Rs 18,000 crore buyback window to open on November 20; here’s what shareholders need to know
IT major Infosys’ largest-ever share buyback programme worth Rs 18,000 crore is set to open for subscription on Thursday, and will close on November 26, according to a regulatory filing, PTI reported.The company plans to buy back 10 crore fully paid-up equity shares of a face value of Rs 5 each, representing up to 2.41 per cent of the total paid-up equity share capital, at Rs 1,800 per share.“The eligible shareholders can tender their equity shares during the tendering period, i.e. from November 20, 2025, to November 26, 2025. The buyback is being undertaken by the company after taking into account the strategic and operational cash needs of the company in the medium term and for returning surplus funds to the shareholders in an effective and efficient manner in line with its capital allocation policy,” Infosys said.Infosys intends to steadily increase its annual dividend per share (excluding any special dividends). The buyback is anticipated to enhance shareholder value over the long term by reducing the equity base.“Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85 per cent of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/special dividends, subject to applicable laws and requisite approvals, if any,” according to the company’s stated Capital Allocation Policy.Infosys shares buyback historyThe company had announced its first share buyback programme in 2017. Infosys, at that time, had purchased 11.3 crore shares, or up to 4.92 per cent of the paid-up equity share capital of the company, for Rs 1,150 per equity share, amounting to around Rs 13,000 crore.The Bengaluru-headquartered company had, in 2022, announced a share buyback of Rs 9,300 crore via an open market route for a maximum price of Rs 1,850 per equity share.The second buyback was worth Rs 8,260 crore in 2019, the third was Rs 9,200 crore, and the last was Rs 9,300 crore in 2022-23.Who are the promoters? Infosys promoters and promoter group, including Nandan M Nilekani and Sudha Murty, have decided not to participate in the buyback. The promoters collectively hold 13.05 per cent of the company’s equity as on the buyback announcement date.
