Infosys's Massive Rs 18,000 Crore Buyback: Are You Ready for This Wealth Windfall?

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Infosys Limited, a leading Indian IT services company, has announced its biggest-ever share buyback program, a significant event for its investors. The company intends to repurchase 10 crore fully paid-up equity shares, representing approximately 2.41 per cent of its total paid-up share capital, for a total sum of Rs 18,000 crore. This exercise will be conducted through the tender route, allowing shareholders to tender their shares at a price of Rs 1,800 per share. This buyback price offers a premium of around 16-19 per cent over the market price at the time of the announcement, providing shareholders an attractive opportunity. The record date for identifying eligible investors for this buyback is set for Friday, November 14, 2025. It is important for investors to note that the last day to purchase shares to be eligible for the buyback, considering the T+1 settlement cycle, is November 13, 2025. A key detail is that the company's promoters, including prominent figures like N.R. Narayana Murthy, Nandan Nilekani, and Sudha Murty, have decided not to participate in the buyback. Their non-participation will lead to an increase in the promoters' relative shareholding from 13.05 per cent to 13.37 per cent, while public shareholding will consequently decrease. The buyback is designed to support shareholder value and signal strong confidence in Infosys's future growth prospects.

Impact: This move is expected to be positive for Infosys shareholders by providing liquidity at a premium. It can also boost investor confidence in the stock, potentially leading to a stable or upward movement in its share price. The buyback is a sign of financial strength and a commitment to returning capital to investors. Rating: 8/10

Terms Explained: * Share Buyback: This is when a company buys its own outstanding shares from the open market or directly from its shareholders. It reduces the number of shares available, potentially increasing earnings per share and shareholder value. * Tender Route: A method for executing a share buyback where the company makes a formal offer to shareholders to buy a specified number of shares at a fixed price within a certain period. Shareholders can choose to 'tender' (offer) their shares for repurchase. * Record Date: This is the crucial date determined by the company to identify which shareholders are officially registered on its books and are therefore eligible for corporate actions like dividends, stock splits, or buybacks. * Promoters: These are typically the founders, their families, or early investors who hold a significant stake in a company and often play a key role in its management and strategic direction.