Infosys Buyback 2025: Should You Tender Your Shares in ₹18,000-Crore Offer?
Infosys has once again drawn strong attention from the market with its plan for a massive ₹18,000-crore share buyback in 2025. The company is one of India’s top IT firms, and its buyback decisions always spark big conversations among investors. Many people now want to know if this offer is worth joining. The reason is simple. A buyback often shows that a company has solid cash reserves and wants to reward its shareholders.
This new offer also comes at a time when the global IT sector is facing mixed demand. So investors are trying to understand what this buyback means for the company’s future. The premium price, the size of the offer, and the expected acceptance ratio all matter here. Each part plays a key role in helping shareholders decide their next move.
If you hold Infosys shares, this buyback may look like a good chance. But it still needs a closer look. And that is what this article will help you with.
What is the Infosys Buyback 2025?
Infosys has announced a buyback of up to ₹18,000 crore. The company will repurchase up to 10 crore equity shares at ₹1,800 per share. The buyback window opens on 20 November 2025 and closes on 26 November 2025. The record date to determine eligible shareholders was 14 November 2025. The program will buy roughly 2.41% of paid-up equity capital. These details come from the company documents and regulatory filings.
Why is Infosys Conducting this Buyback?
The company aims to return surplus cash to shareholders. A buyback also reduces the share count. That can raise earnings per share (EPS) if profits remain steady. Infosys has used buybacks before to manage capital. The move signals confidence from the board about cash flow and margins. Analysts note the offer comes amid mixed demand in the global IT sector. Some see it as a defensive capital allocation.
Eligibility Criteria for Shareholders
Only shareholders on the record date (14 Nov 2025) can participate. The buyback follows the tender offer route. There is a reserved quota for small shareholders. Promoters will not participate. Participating shareholders must hold shares in demat form and follow the tender procedures through their broker or registrar. Kotak Mahindra Capital is the manager, and KFin Technologies is the registrar for the offer.
Buyback Price Analysis
The buyback price of ₹1,800 is a clear premium to the pre-announcement market price. On announcement days, the stock traded around ₹1,500-1,550, so the buyback offered about a 19-21% premium. That premium creates an immediate, predictable upside for accepted shares. However, the true benefit depends on the acceptance ratio and tax treatment. Past Infosys buybacks sometimes lifted short-term prices. Long-term gains depend on business performance after the share count falls.
Acceptance Ratio: What Investors Can Expect?
A tender offer like this usually has a low acceptance ratio for retail investors. Early estimates put retail acceptance in the low double digits. For example, entitlement rules show small-holder allocations and general allocations that translate into modest acceptance probabilities for most holdings. If many shareholders tender, only a fraction of the tendered shares will be accepted. Investors should assume partial acceptance is likely, not full acceptance.
Should you Tender Your Infosys Shares?
Short-term traders may find the offered premium attractive. Tendering can lock in immediate gains on accepted shares. Retail investors who need cash or prefer reduced market exposure may benefit. Long-term investors must weigh tendering against future growth potential. Infosys remains a major IT services firm with strong cash flow.
Selling into the buyback gives a known price. Keeping the shares bets on future earnings and dividends. High-net-worth investors should model expected acceptance ratios and tax impact before deciding. Using an AI stock research analysis tool can help simulate acceptance outcomes and tax scenarios for different holding sizes.
Impact on Infosys Share Price
Buyback announcements often lift the stock. Infosys shares rose on the announcement and at the window opening. The run-up reflects the buyback premium and expected EPS improvement. After the buyback closes, the price may drift. If acceptance is low, many shares remain in market supply, and the post-buyback effect can be muted. If the company continues strong revenue growth, any EPS boost may support higher prices over time. Investors should not assume the buyback guarantees lasting gains.
Tax Implications for the Buyback
Tax rules changed from 1 October 2024. After that date, buyback proceeds are taxable in the hands of shareholders. The company will deduct tax at source (TDS) on buyback payments. For resident individuals, the proceeds may be taxed under “Income from Other Sources” or at slab rates, depending on the law and guidance. This makes the net benefit lower than the headline premium. Selling in the open market may produce capital gains taxed differently. Consult a tax advisor and check the company’s buyback tax notice for exact rates and TDS mechanics.
How to Tender Your Shares?
Confirm eligibility using the record date and your demat holdings. Read the company’s letter of offer and the registrar’s instructions. Log in to the broker platform or contact the registrar (KFin). Place the tender bid during the window (20-26 Nov 2025). Keep proof of your tender. Monitor the acceptance announcement after the window closes. If shares are accepted, the buyback consideration will be paid after tax deduction, and excess shares will remain in your demat.
Risks and Considerations
Tax rules can erode the headline gain. Acceptance ratio may be low. Market price could move above the buyback price before acceptance is finalized, reducing opportunity cost for non-participants. Conversely, the market price could fall after the buyback closes, hurting holders of unaccepted shares. Operational errors in tendering can cause missed opportunities. Large holders should calculate the net yield after TDS and potential capital-gains tax.
Final Verdict
The buyback offers a clear, short-term premium. It suits investors who seek immediate cash and accept partial acceptance. Long-term holders should weigh potential future earnings and the tax cost. Each investor’s choice depends on holding size, tax bracket, liquidity needs, and long-term view on Infosys. Read the letter of offer carefully, model post-tax returns, and consult a tax or financial advisor before deciding. Official documents and live updates provide the most accurate facts.
Frequently Asked Questions (FAQs)
The Infosys buyback price for 2025 is ₹1,800 per share. The company set this price in its offer document released in November 2025. It gives a clear premium to shareholders.
Shareholders can apply through their trading app or broker during the buyback window from 20-26 November 2025. They must select the tender option and confirm the number of shares they want to submit.
The acceptance ratio depends on how many people tender their shares. Early market estimates suggest a low to medium ratio for retail holders. The final ratio will be announced after 26 November 2025.
Disclaimer: The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
