Infosys' buyback of shares worth Rs 9,200 cr to start from Friday

IT services major Infosys' share buyback programme worth Rs 9,200 crore will commence from Friday 25. The company has proposed to buy back shares at a maximum price of Rs 1,750 per share. The company had announced its intention of a share buyback during its Q4FY21 results. 

The Board approval for the buyback was issued on April 14, and shareholder approval was received on April 19, at the company’s 40th Annual General Meeting (AGM). 

The company also said that the buyback will be done from its free reserve in accordance with Regulation 4(ix)of the Buyback Regulations. The share buyback is in accordance with the company board's decision to return 85 per cent of the free cash reserves over a period of five-years through a combination of dividends and share buyback to shareholders. 

Also, Infosys will utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 4,600 crore. Based on the minimum buyback size and the maximum buyback price, the company will purchase an indicative minimum of 2,62,85,714 equity shares.