हिंदी में पढ़ने के लिए मेनू बार से हिंदी भाषा चयन करें।
Infosys has announced its largest-ever share buyback plan of ₹18,000 crore, aiming to reward its shareholders and boost investor confidence. The company will repurchase its shares at ₹1,800 per share, which is about 19% higher than the current market price.
Through this buyback, Infosys will repurchase nearly 10 crore shares, representing about 2.41% of the company’s equity capital.
Buyback Process
The buyback will be carried out through the tender offer route. This means that shareholders will be offered a fixed price (₹1,800) at which they can tender their shares. If more shares are offered than required, Infosys will accept them on a pro-rata basis.
Infosys has already received regulatory clearances for this buyback. The U.S. Securities and Exchange Commission (SEC) has also granted special exemptions to the company to align the process with both Indian and U.S. regulations.
Why is Infosys Launching This Buyback?
- Falling Share Price – Infosys shares have fallen nearly 20% so far this year.
- Uncertain Market Conditions – The IT sector has been facing global challenges such as economic slowdown, high interest rates, and reduced client spending.
- Strong Cash Reserves – Infosys has healthy cash flows and reserves, which it plans to return to shareholders.
- Confidence Signal – The buyback shows that management is confident in the company’s long-term growth and wants to support the stock price.
Benefits for Shareholders
- Attractive Premium – Shareholders tendering their shares in the buyback will get nearly 19% more than the market price.
- Improved EPS – With fewer outstanding shares, the company’s earnings per share (EPS) are likely to improve.
- Long-Term Support – The buyback could help stabilize and support Infosys’ stock price in the long run.
Possible Risks
- If the company spends too much cash on the buyback and reduces investments in R&D, AI, and emerging technologies, it may hurt future competitiveness.
- The impact of a buyback is often short-term. Long-term growth depends on business performance and innovation.
- Not all shareholders’ shares may be accepted, as the process is based on a pro-rata mechanism.
Impact on the IT Sector
Infosys’ move has sent positive signals across the IT industry. Investor sentiment has improved, and other major IT companies may also consider similar shareholder-friendly strategies. After the buyback announcement, IT stocks, including Infosys, witnessed an upward trend in the market.
Market Reaction
Infosys shares jumped after the buyback announcement. Several brokerages have given a target price in the range of ₹1,700–₹1,880, with many analysts recommending a “buy on dips” strategy.
Outcome
Infosys’ ₹18,000 crore buyback is not only a significant reward for shareholders but also a strong signal to the market that the company remains confident in its financial strength and long-term growth.
While this buyback is expected to benefit investors in the near term, the real test for Infosys lies in how it invests in AI, cloud, and digital technologies to stay competitive in the evolving IT landscape.
Source: official announcement
