Infosys announces Rs 18,000 crore buyback, its largest in 10 years

Infosys announced a Rs 18,000 crore buyback at a 19.3 per cent premium, its largest in 10 years, as IT stocks remain under pressure from weak macro trends and tariff risks

Infosys will buy back shares worth Rs 18,000 crore, its largest in a decade, at a time when IT stocks have been under pressure due to a weak macroeconomic environment and tariff-related uncertainties.

 

The Bengaluru-based company will repurchase 100 million shares at an average price of Rs 1,800 per share, a 19.3 per cent premium to its closing share price of Rs 1,509.50 on Thursday.

 

This represents 2.41 per cent of the total number of equity shares in the company’s paid-up equity capital, the country’s second-largest IT services provider said.

 

This is the fifth buyback by the company in the last 10 years. The most recent was in 2022, an open market purchase worth Rs 9,300 crore at an average price of Rs 1,850 per share, when it bought back 60 million shares.

 

The company’s largest buyback prior to this was in 2017, when it spent Rs 13,000 crore via a tender offer, repurchasing 113 million shares at an average price of Rs 1,150 per share. In 2019, Infosys spent Rs 8,260 crore to purchase 110.5 million shares at Rs 747 per share in the open market. In 2021, it bought back 55.8 million shares worth Rs 9,200 crore, according to data compiled by Business Standard.

 

The latest buyback comes as Infosys shares have declined 22 per cent over the past year and remain down this year. The broader IT index has fallen over 17 per cent, making it the worst-performing major sector, compared to a 5.5 per cent rise in the Nifty50 index.

 

Hong Kong-based brokerage CLSA said Infosys’ move may prompt TCS to also consider a buyback to support its share price amid weak market conditions.