Post by : Bianca
Haleem
Infosys shares experienced significant gains on Thursday, rallying as much as 4% after the tech giant revealed key information regarding its largest-ever share buyback valued at ₹18,000 crore.
In a filing to the exchange on October 22, Infosys announced that its promoters—Nandan Nilekani, Sudha Murty, among others—would not take part in the buyback. This choice is interpreted as a testament to their confidence in the company’s long-term growth potential.
The tech firm based in Bengaluru intends to buy back 10 crore shares priced at ₹1,800 each, delivering a premium of about 22% relative to Wednesday's closing price. The move aims to enhance shareholder value and increase the retail entitlement ratio given that promoters are opting out.
Currently, Infosys has yet to announce the record date and additional procedural details regarding the buyback plan. According to the latest shareholding data, promoters retained a 14.3% stake as of the September quarter.
This information comes shortly following the release of Infosys's September quarter results, which were slightly better than analyst predictions. However, a cautious revision in their full-year revenue guidance—from 1–3% to 2–3%—has tempered some optimism, indicating a potentially weaker second half of FY25.
On Thursday, Infosys shares traded 3.5% higher at ₹1,524.6 on the NSE. Despite today’s increase, the stock is still down roughly 22% year-to-date, reflecting broader caution in the IT sector.
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