India's second largest software services firm Infosys today said it has fixed November 1, 2017, as the record date for its up to Rs 13,000 crore share buyback programme. "The Buyback Committee has approved and fixed November 1, 2017, to be the record date for determining the entitlement and the names of the equity shareholders to whom the letter of offer will be sent and will be eligible to participate in the buyback...," Infosys said in a regulatory filing. It added that the buyback proposal had been approved by the Board on August 19 and by the shareholders earlier today. The share buyback, which will be the first in the company's 36-year long history, will see Infosys buying back over 11.30 crore shares at Rs 1,150 apiece. The buyback had been a long-standing demand by some of the founders and high-profile former executives, who have been pushing Infosys to return surplus capital to its shareholders. Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting share price during the period of the sluggish market condition. Earlier this year, its larger rival Tata Consultancy Services completed a Rs 16,000-crore mega buyback offer.
Other competitors like Cognizant, Wipro and Mindtree had also made similar announcements. Infosys has also fixed November 1 as the record date for payment of interim dividend, subject to Board decision on the same. Infosys is slated to announce its financial results for the July-September 2017 quarter on October 24.
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