The Infosys board has approved a share buyback of up to Rs 18,000 crore, its largest ever and first in three years, the IT major said in an exchange filing late Thursday. The repurchase will be conducted through the tender offer route with the company buying back up to 100 million fully paid-up equity shares of face value 5 each, representing 2.41% of the existing paid-up share capital.
The buyback price has been fixed at Rs 1,800 per share, a premium to the stock’s recent trading range. The firm’s stock ended Thursday at Rs 1509.5 per share, down 1.51% from the previous close. Shareholders on a record date — which is yet to be announced — will be eligible to participate, and the proposal is subject to shareholder approval through a special resolution by postal ballot.
“The buyback size does not exceed 25% of the aggregate of the paid-up capital and free reserves, based on the latest audited interim condensed standalone and consolidated financial statements of the Company as on June 30, 2025,” it added.
It said the Rs 18,000-crore size excludes expenses such as brokerage, taxes and regulatory fees. Holders of American Depositary Shares will also be able to participate by converting them into equity shares before the record date.
Indian IT companies lean on buybacks to return cash to investors
Infosys’s announcement comes against the backdrop of Indian IT companies increasingly leaning on buybacks to return cash to investors. Data from similar undertakings by Indian IT giants shows that Wipro, HCLTech and TCS have all tapped this route in recent years.
Wipro announced a Rs 12, 000-crore buyback in 2023 at Rs 445 per share, TCS concluded a Rs 17,000-crore buyback in December 2023 at Rs 4,150 per share. Infosys’ latest buyback size of Rs 18, 000 crore is at par with TCS’ in March 2022 when the market leader had undertaken the exercise.
Analysts’ comments
Brokerages believe Infosys’s latest move could prompt rivals to follow suit. CLSA, for instance, has suggested that Tata Consultancy Services may consider a tender offer-style buyback of around Rs 20, 000 crore instead of paying a large special dividend in the coming quarters.
Analysts noted that TCS’s past buybacks have provided support to its stock, and with valuations currently seen as attractive, the timing could be favourable.