Infosys Limited has officially fixed November 14, 2025, as the record date for its Rs18,000 crore share buyback plan. This means shareholders whose names appear in the company’s register as of that date will be eligible to participate in the buyback offer.
What is a Share Buyback?
A share buyback, or share repurchase, is when a company buys back its own shares from existing shareholders, usually at a premium over the market price. This reduces the total number of shares outstanding in the market.
How Infosys’s Buyback Works
Infosys received board approval to repurchase up to 10 crore shares (around 2.41% of total equity) through the tender offer route. Shareholders can choose to tender some or all of their shares back to the company at a fixed price of Rs1,800 per share. This price is a healthy premium over the current market price of Rs1,459 (as of November 7, 2025, 11:00 AM).
Why Does a Company Do a Buyback?
Rewarding Shareholders: It’s a direct way to return excess cash to investors by paying them a premium for their shares.
Enhancing Earnings Per Share (EPS): Fewer outstanding shares mean the company's profits are divided among fewer shares, often boosting EPS.
Signaling Confidence: Buybacks signal management's belief that the stock is undervalued and that the company has a strong financial position.
Optimizing Capital Structure: It can improve ratios and overall capital efficiency, benefiting long-term shareholder value.
Benefits for Infosys and Its Shareholders
Infosys’s large Rs18,000 crore buyback reflects its robust cash reserves and consistent operational performance.
By reducing share count, shareholders who retain stock may see a rise in earnings per share and potentially stock price appreciation.
The buyback comes at a time when the IT sector is going through a churn, buoyed by steady demand for digital transformation and an ongoing tariff war.
The move maintains Infosys’s disciplined capital management approach, balancing growth, dividends, and capital returns.
Takeaways
Record Date: November 14, 2025, determines eligible shareholders.
Buyback Size: Rs18,000 crore at Rs1,800/share.
Premium: About 23% over the current market price, incentivizing participation.
Promoters Opt Out: Promoters have chosen not to participate, leaving the buyback to public shareholders.
Long-term Outlook: Buybacks tend to support stock prices and signal company strength.
Strategic Signal: Reinforces confidence in Infosys’s growth and cash flow consistency.
Investors should monitor how this buyback impacts Infosys’s stock performance and whether other IT companies follow suit in this capital-returning trend.
Disclaimer
This blog is for informational purposes only and should not be considered financial or investment advice. The information provided is based on publicly available sources as of the publication date. Investors are advised to conduct their own research or consult with a certified financial advisor before making any investment decisions. Indira Securities is not responsible for any financial losses or actions taken based on this content.