The company plans to buy back 11.3 crore shares at Rs 1,150 apiece
Infosys on Monday said some of its promoters have shown the intent to take part in the IT major’s Rs 13,000-crore share buyback programme. The co-founders, including N R Narayana Murthy, hold 12.75% stake in Infosys. However, Infosys did not name the promoters who are keen to participate in the buyback. “In terms of buyback regulations, under the tender offer route, the promoters have the option to participate in the buyback. We would like to inform that some of the members of the promoter and promoters group of the company have communicated their intention to participate in the proposed buyback,” the company stated in a regulatory filing. The development takes place at a time when founder Narayana Murthy is set to address investors on Tuesday evening. The IT major has just witnessed a stormy 10 days, during which its CEO Vishal Sikka exited, its chairman R Seshasayee resigning, and co-founder Nandan Nilekani coming back into the fold as non-executive chairman.
The buyback is subject to the approval of shareholders of the company through a special resolution, Infosys said. The announcement on the modalities such as process and timeline will be released in due course, it added. The company plans to buy back 11.3 crore shares at Rs 1,150 apiece. This is Infosys’ first-ever buyback and it is second only to the Rs 16,000 crore share repurchase by Tata Consultancy Services (TCS) announced in April this year. CLSA had earlier said that the acceptance ratio was expected to be only about 5%. The promoter group at Infosys include N R Narayana Murthy, Nandan Nilekani, SD Shibulal, S Gopalakrishnan and K Dinesh.