Infosys Shareholders to Benefit From ₹18,000 Cr Buyback
Infosys, India’s second-largest IT services company, has unveiled its largest-ever share buyback plan, valued at ₹18,000 crore. The announcement comes as a significant move to return cash to shareholders and demonstrates the company’s strong capital position and commitment to enhancing shareholder wealth.
The tender offer will be conducted at ₹1,800 per share, which represents a 19% premium over the stock’s previous closing price. This buyback is expected to positively influence earnings per share (EPS), boost investor confidence, and highlight Infosys’s strategic focus on shareholder value creation.
The buyback is particularly relevant to over 2.6 million retail and institutional shareholders of Infosys. Amid recent market volatility and a year-long decline in stock price, the move provides shareholders with an opportunity to sell their shares at a premium.
Analysts view the buyback as a vote of confidence in Infosys’s future performance and a signal of stability in the Indian IT sector, which has faced mixed investor sentiment in recent months. Overall, the buyback underscores Infosys’s financial discipline and proactive approach to rewarding investors while maintaining long-term growth momentum.
Infosys Announces ₹18,000 Crore Buyback for Shareholders
On September 11, 2025, Infosys’s board approved a share buyback program worth ₹18,000 crore, marking the company’s fifth such initiative. The buyback will be conducted through a tender offer at ₹1,800 per share, representing a 19% premium over the previous day’s closing price of ₹1,509.50 on the BSE and ₹1,512.20 on the NSE.
Approximately 10 crore (100 million) fully paid-up equity shares will be repurchased, accounting for 2.41% of the company’s total paid-up equity share capital. This move underscores Infosys’s commitment to returning value to its shareholders.
Why Infosys Is Going for a Massive Buyback Now
Infosys’s decision to initiate this buyback comes amid a 20% decline in its stock price over the past year, despite positive financial results. The company aims to return excess cash to shareholders and boost investor confidence.
The buyback aligns with Infosys’s capital allocation policy, which targets returning 85% of free cash flow to shareholders over five years through dividends and repurchases.
How Infosys Shareholders Can Benefit from the Buyback
Shareholders can tender their shares at ₹1,800 each, above the current market price. This provides an immediate opportunity for profit. The buyback will be conducted on a proportionate basis through the tender offer route, in accordance with the provisions of the Securities and Exchange Board of India (SEBI).
The company has also received exemptive relief from the U.S. Securities and Exchange Commission (SEC) due to conflicting regulatory requirements between Indian and U.S. laws for tender offer buybacks.
Infosys Share Price Movement After the Buyback News
Following the announcement, Infosys shares rose by 2.3% to ₹1,544.65 on the BSE during early trading on September 12, 2025.
The rally ended a five-session losing streak, with Infosys emerging as the top gainer on the Nifty IT index as well as the benchmark indices Sensex and Nifty.
The buyback has positively impacted investor sentiment, leading to increased trading volumes.
What Analysts Say About the Infosys Buyback Plan
Analysts view the buyback as a positive move to return value to shareholders amidst market volatility. JPMorgan reiterated an ‘Overweight’ rating on Infosys, citing the company’s strong cash position and the buyback’s potential to support the stock price in the coming months.
Jefferies recommended a ‘Buy’ rating with a target price of ₹1,660, suggesting an upside potential of nearly 6% from the current market price.
Infosys and the Larger Impact on the Indian IT Sector
Infosys’s buyback sets a precedent in the Indian IT sector, signaling confidence and financial stability. The move is expected to encourage other IT firms, such as TCS and Wipro, to consider similar strategies to enhance shareholder value amidst market challenges.
Analysts believe that such initiatives could lead to a more investor-friendly environment in the Indian IT sector.
Conclusion
Infosys’s ₹18,000 crore share buyback is a significant step in returning value to shareholders and reinforcing the company’s commitment to enhancing shareholder wealth. Investors should consider participating in the buyback, keeping in mind the record date and their investment goals.
The move reflects Infosys’s confidence in its financial health and its strategy to optimize capital allocation.
FAQ’S
The buyback aims to return excess cash to shareholders and boost investor confidence amidst a 20% decline in stock price over the past year.
All equity shareholders of Infosys as on the Record Date, including those holding shares through American Depositary Shares (ADSs), are eligible to participate.
While the buyback is expected to support the stock price, future movements will depend on market conditions and company performance.
Disclaimer
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.
