Winning Bizness Economic Desk
Mumbai. Infosys is rolling out its largest share buyback programme, aiming to return excess cash to its investors through a structured purchase of its own shares. The company has announced that it will buy 10 crore shares at a price of ₹1,800 each, marking a ₹18,000-crore plan that will remain open for subscription from November 20 to November 26. Investors who held shares before the record date of November 14 are eligible to participate.
Use of surplus cash for buyback
Infosys has clarified through its regulatory filing that it currently holds more cash than it needs for future operations. After accounting for upcoming requirements, a sizeable surplus amount still remains. Instead of keeping this idle cash in banks, the company has chosen to return it to investors through the buyback route. This method allows Infosys to purchase its own shares directly from shareholders via the stock market.
Key points behind the buyback
The company says buybacks serve multiple business and financial objectives.
Some of the major advantages include:
- Fewer outstanding shares lead to higher earnings per share over time
- Shareholders receive direct value through premium-priced buybacks
- Using excess cash improves capital efficiency for the company
- A buyback signals strong confidence in future growth
- Companies often choose buybacks when they believe their stock is undervalued
Investor gains expected through reduced equity base
Infosys expects this buyback to strengthen shareholder value in the medium term. With equity base shrinking, return on each outstanding share may rise, boosting long-term investor sentiment. The company will continue its half-yearly dividend payout and is also evaluating special dividends. Infosys has set a target to return 85% of its free cash flow to investors over the next five years, starting financial year 2025.
Stock movement and valuation trends
Infosys shares traded at ₹1,541 on November 19, up 3.67 percent for the day. The stock has seen mixed movement this year.
Some recent performance indicators:
- Up 5.48% in the past one month
- Down 1.21% in the last six months
- Down 15.55% over one year
- Down 18.14% since January this year
The company’s current market value stands at ₹6.4 lakh crore, reflecting its standing as one of India’s leading IT firms despite recent stock volatility.
Growth history and quarterly performance
Founded in 1981 by N R Narayana Murthy with an initial capital of just 250 dollars, Infosys has today grown into a global technology and consulting powerhouse. It serves around 1,900 clients across 56 countries and operates 13 subsidiary units worldwide.
Its leadership includes Salil Parekh as CEO and managing director and D Sundaram as lead independent director.
In the July-September quarter, the company reported consolidated net profit of ₹7,364 crore, reflecting a 13.2% rise from the previous year. Revenue for the same quarter grew 8.6% to ₹44,490 crore.
Additional highlights:
- Profit increased from last year’s ₹6,506 crore
- Revenue rose from previous ₹40,986 crore
- Growth driven by digital and consulting demand
