It’s a mega Buyback from Infosys. The Infosys board has approved a proposal to buy back equity shares with Rs 18,000 crore —the biggest ever by the company. The buyback will be at a 19% premium on the current price.
The transaction will involve purchase of 10,00,00,000 fully paid-up equity shares at a price of Rs 1,800 each. The Infosys share price closed at Rs 1,512.20 on September 11. The Buyback price is therefore at a 19% premium.
This is the first buyback in three years and the fifth in the last eight years for Infosys. The shares bought back will represent up to 2.41% of the total equity shares in the existing total paid-up equity share capital of the company on a standalone basis.
Infosys plans to execute the buyback through the tender offer route but has not specified an exact timeline.
The IT sector itself has not seen a buyback from top-tier companies in the last two years. Its peers, TCS and Wipro, have conducted five buybacks each between 2016 and 2023, whereas Infosys had carried out four buybacks since 2017.
The buyback comes at a time when India is facing pressure from tariffs imposed by US President Trump, and the US economy is also showing signs of a potential slowdown alongwith there are growing calls from Trump’s supporters to curb H-1B visas.
Share price of Infosys
The share price of Infosys has seen a significant drop in the past few months, declining 19.67 per cent so far this year. In today’s trade, the stock fell by 1.33 per cent.
Infosys’ Strong Cash Position
As of June 2025, Infosys held cash and cash equivalents worth ₹24,500 crore, according to Moneycontrol. The company operates a highly cash-generative business and has access to global capital. Its primary sources of funds include cash from operations and income from short- and long-term investments, among others.
“Our strong performance on the back of meticulous execution over the years, as reflected in the combination of high growth, strong cash generation and profitability, has led to building a strong, debt-free, and liquid Balance Sheet,” the company said in its annual report for FY25.
Infosys returns 85% of cumulative free cash flow to shareholders
Infosys has returned nearly Rs 88,400 crore—or 85% of its cumulative free cash flow between FY20 and FY24—through dividends and buybacks, in line with its capital allocation policy. For the year ended March 31, 2025, the company paid an interim dividend of Rs 21 per share and declared a final dividend of Rs 22 per share.
In the five years preceding FY25, Infosys purchased and extinguished a total of 11.62 crore fully paid-up equity shares from stock exchanges. The company has only one class of equity shares, and even ADR holders are eligible to participate in the buyback.