Infosys share buyback: Size, price, dates and other key things to know

Synopsis

Infosys announced its biggest-ever Rs 18,000-crore share buyback, offering Rs 1,800 per share — nearly an 18% premium to market price. This is its first tender-route buyback since 2017 and aligns with its capital allocation policy to return 85% of free cash flow.

IT giant Infosys launched its largest-ever share buyback on Friday, September 12. The move comes at a time when its shares remain in bear market territory, down 23% from their peak, even as they rallied 8% over the past four trading sessions in anticipation of this announcement.

Here’s everything you need to know about the company’s 5th buyback since listing.

Infosys’ Rs 18,000-crore offer will buy back up to 10 crore shares, or 2.41% of its paid-up capital, at Rs 1,800 per share — an 18.1% premium to Friday’s closing price of Rs 1,524.

The record date for eligibility is yet to be announced, giving investors time to position themselves. The company will buy back shares from all equity shareholders as on the record date, including those who become equity shareholders on the record date. The buyback offer is subject to the approval of the shareholders.

This is the first buyback through the tender route since the company’s maiden buyback in 2017. All of the last three carried by the IT major were all through the open market. The tender mode typically means that a company offers to buy shares from existing shareholders at a fixed price, usually at a premium to the current market price. It rests on investors if they wish to sell their shares within a specified time frame.

Experts say it could take 3-4 months for the share repurchase program to get fully executed.

The buyback fits into Infosys' broader capital allocation policy of returning 85% of free cash flow to shareholders over FY 25-29. The company returned about 52% of its FCF through dividends in FY25.

What are experts saying?

Nomura says the company generates "more than Rs 30,000 crore in annual free cash flow" and currently offers an attractive dividend yield of 4.4%. The brokerage has a buy call on the stock with a target price of Rs 1,880, saying that the buyback would be largely EPS-neutral in FY26.

According to Livelong Wealth's Hariprasad K, the buyback could act as a psychological floor for the stock, with the Rs 1,800 buyback price serving as a key reference point for long-term investors.

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"Despite short-term challenges, Infosys continues to boast robust fundamentals: a healthy order pipeline, consistent cash flows, and global credibility as a trusted IT partner. The buyback reflects management’s view that these strengths will translate into sustained growth as technology spending revives and AI adoption creates new opportunities," he said. Infosys shares ended at Rs 1,524 on Friday, higher by 0.95% from the last close.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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