Infosys buyback history: Stock gained up to 22% in 6 months post approval

Infosys shares have historically rebounded post buyback approvals over long term, rising 22 per cent over six months in 2021. Will this time be any different?

Shares of Infosys Ltd. will remain in focus on Thursday as the information technology major's board decides on its fifth-ever buyback program. Historical data show that Infosys' stock has given mixed performance in the medium and short term once the board approves a buyback.

 

The IT bellwether last conducted a share buyback in December 2022, repurchasing over 60 million shares through the open market. In June 2021, it bought back more than 55 million shares. Earlier, the company carried buyback in 2019 for over 110 million shares, and another in 2017 involving more than 113 million shares.

 

During the 2017 and 2021 buybacks, Infosys shares slipped as much as 5.8 per cent in the five sessions and one month after board approval, data compiled by Business Standard shows. However, they rebounded over the medium term, with the stock gaining 9 per cent over six months in 2017 and 22 per cent in 2021. 

 

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In contrast, the 2019 and 2022 buybacks delivered gains both in the short and long term. In 2019, the stock rose 7.7 per cent in five days and 11.4 per cent in a month. Similarly, in 2022, it advanced 5.9 per cent in five days and 10.6 per cent in a month. 

 

When compared with its competitors, the stock has not shown major divergence over both the long and short term during the same time period. 

 

Infosys Share buyback history

The tech major utilised ₹13,000 crore (the highest so far) for its buyback back in 2017, via tender offer, repurchasing 113 million shares at an average price of ₹1,150 per share. In 2019, Infosys spent ₹8,260 crore to purchase 110.5 million shares for ₹747 per share in the open market. Similarly, in 2021 and 2022, the tech giant bought shares worth ₹9,200 crore (55.8 million shares) and ₹9,300 crore (60.4 million shares), respectively.  ALSO READ | Infosys share buyback: Stock down 21% in 2025; can the move revive sentiment? 

Cumulatively, Infosys has spent ₹39,760 crore for buybacks, repurchasing a total of 339.7 million shares at an average price of ₹1,271.25 per share. 

 

Infosys Stock surges ahead of 2025 buyback approval

Since the announcement that the board will consider a buyback proposal on September 8, the stock has rallied over 7 per cent, driving the rally in the broader IT pack. From its low of ₹1,428.3 on September 8, the stock rallied as high as ₹1,534.9 per share on September 10.

 

Infosys said its board will consider a share buyback proposal at its meeting on September 11, 2025. The outcome will be disclosed to stock exchanges after the meeting.

 

The IT major is considering a buyback when its shares have tumbled 28 per cent from its peak (until September 8) and is down 18.5 per cent so far this year. The broader IT index gauge is down over 17 per cent, the worst-performing major sector this year, compared to a 5.5 per cent rise in the Nifty50 index.

 

Infosys shares trade at a forward price to earnings (P/E) of 21.6 times, compared to its five-year average of 24.8x. Meanwhile, the Nifty IT index trades at 25x PE, with the benchmark Nifty50 trading at 22.6x.