Flush with cash, Infosys plans largest-ever share buyback:Company will repurchase 10 crore shares worth ₹18,000 Cr from Nov 20-26

Infosys is set to begin its biggest share buyback programme to date, valued at ₹18,000 crore. Under this programme, the company will repurchase 10 crore shares from investors at a price of ₹1,800 per share, amounting to 2.41% of its total shareholding. The buyback window will remain open from November 20 to November 26, while the record date was November 14—meaning only investors who held shares before this date can participate. What Is a Share Buyback? In its regulatory filing, Infosys explained that it currently holds more cash than required. Even after considering future financial needs, a significant surplus remains. Instead of letting this money sit idle, the company plans to return value to shareholders by buying back its own shares. Why Do Companies Conduct Share Buybacks? A buyback occurs when a company repurchases its own shares from the market. This offers several advantages: • Higher Value Per Share: Reducing the number of outstanding shares increases Earnings Per Share (EPS), which can push the stock price higher. • Efficient Use of Excess Cash: Companies with surplus cash often use buybacks to reward shareholders. • Signals Confidence: A buyback indicates management believes the stock is undervalued and is optimistic about future performance. Two Categories for Participation: Priority for Small Investors 1. Reserved Category (Small Investors) For investors holding shares worth up to ₹2 lakh. • 15% of the buyback is reserved for them • Buyback ratio: 2:11 (2 shares can be tendered for every 11 held) 2. General Category For those holding shares worth above ₹2 lakh. • Buyback ratio: 17:706 Entitlement refers to the number of shares an investor is allowed to tender based on their shareholding on the record date. Shareholder Value to Rise Through Dividends and EPS Infosys expects the buyback to enhance shareholder value by reducing its equity base and thereby increasing earnings per share. The company will continue paying semi-annual dividends and may issue special dividends. From FY2025 onward, Infosys aims to return 85% of free cash flow to shareholders over the next five years. Infosys Share Performance As of November 19, Infosys shares trade at ₹1,541, up 3.67% today and 5.48% over the past month. However, the stock has: • Fallen 1.21% in the last 6 months • Dropped 15.55% over the last year • Declined 18.14% year-to-date Market Capitalization: ₹6.4 lakh crore Price Movement in 2025: • January 1: ₹1,882 • November 19: ₹1,542 About Infosys Founded in 1981 by N.R. Narayana Murthy with just $250 (approx. ₹22,000 today), Infosys is now a global IT services and consulting leader listed on the NYSE. The company: • Serves 1,900+ clients in 56+ countries • Operates 13 subsidiaries worldwide • Is led by Salil Parekh (CEO MD) and D. Sundaram (Lead Independent Director) Q2 Performance: Profit Up 13.2% In the July–September quarter, Infosys reported: • Net Profit: ₹7,364 crore (up 13.2% YoY) • Revenue: ₹44,490 crore (up 8.6% YoY)