Infosys kicks off Rs 18,000 crore buyback, opens tomorrow

Infosys Ltd has announced an Rs 18,000 crore share buyback that will open for subscription on Thursday and run through November 26. The record date to determine eligible shareholders is set for November 14. The company plans to repurchase 10 crore fully paid-up equity shares of face value Rs 5 each, representing up to 2.41 per cent of its total paid-up equity share capital, at a price of Rs 1,800 per share. The buyback is split into two segments: a reserved category for small shareholders and a general category. A small shareholder is defined as someone holding shares worth not more than Rs 2,00,000 as on the record date, and Infosys has about 25,85,684 small shareholders. The reserved portion will be 15 per cent of the shares proposed to be bought back, or the entitlement of small shareholders, whichever is higher. Promoters and the promoter group, including Nandan M Nilekani and Sudha Murty, will not participate in the buyback, collectively holding around 13.05 per cent of the company on the buyback announcement date. Entitlement for small shareholders is 2:11, meaning tendering 2 shares for every 11 held, while the general category entitlement stands at 17:706. This marks Infosys’s first tender buyback since 2017 and is watched closely by investors seeking to gauge how the market will respond to the offer and how it might influence the stock’s performance in the IT sector.

Cover image source: Infosys shares gain 3% as firm launches Rs 18,000 crore buyback on November 20 🔗

#InfosysBuyback #StockMarketIndia #ITStocks