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Promoters to participate in Rs 13,000-cr share buyback: Infosys

The company, however, did not give details on which promoters are keen to participate in the buyback

Press Trust of India  |  Bengaluru 

Infosys

today said its promoters have expressed the intent to participate in the company's Rs 13,000-crore programme.

The intimation of promoters' participation in the proposed buyback comes after a prolonged acrimony between the founders and the management over alleged corporate governance lapses which led to an abrupt exit of CEO

Co-founder Nandan Nilekani has returned to the company for a second innings, this time as non-executive Chairman in a Board-level shake-up that saw the exit of Chairman along with two independent members.

"In terms of buyback regulations, under the tender offer route, the promoters have the option to participate in the buyback. We would like to inform...that some of the members of the promoter and promoters Group of the company have communicated their intention to participate in the proposed buyback," said in a regulatory filing.

The company however, did not give details on which promoters are keen to participate in the buyback.

The co-founders, including N R Narayana Murthy, hold 12.75% in

The buyback is subject to the approval of shareholders of the company through a special resolution, it said, adding that the announcement on the modalities such as process and timeline will be "released in due course".

On August 19, a day after Sikka resigned as CEO citing slander by company founders, the then Board approved the plan of up to Rs 13,000 crore to reward shareholders.

The company plans to buyback 11.3 crore shares at Rs 1,150 apiece. Infosys' first-ever buyback is second only to the Rs 16,000 crore share repurchase by its bigger rival Tata Consultancy Services (TCS) announced in April this year.

First Published: Mon, August 28 2017. 19:37 IST