The share price of Infosys has jumped over 4% intra-day. Following this, the company emerged as the top gainer on the Nifty in today’s session so far. .
In addition to this, the surge in this IT giant share price also helped the Nifty IT index gain over 2% in early trade, with the sector outperforming others.
Let’s take a look at the key reasons fuelling the rally –
Infosys promoters opt out of buyback
Infosys promoters, including co-founders N.R. Narayana Murthy, Nandan Nilekani, and Sudha Murty, have decided not to participate in the company’s Rs 18,000 crore share buyback.
Moreover, the promoter group collectively holds 13.05% of the company’s equity.
The buyback which was approved by the board on September 11, 2025, involves repurchasing 10 crore fully paid-up shares at Rs 1,800 each. Thus represent 2.41% of the total equity.
Furthermore, the promoters decision not to tender shares means their stake could increase slightly if the buyback is fully subscribed, while public shareholding would reduce marginally.
Largest-ever buyback announcement
This is Infosys biggest share buyback to date. The company has followed a structured capital allocation policy, aiming to return surplus cash to shareholders while meeting operational and strategic needs.
Previous buybacks include Rs 13,000 crore in 2017, Rs 8,260 crore in 2019, Rs 9,200 crore later, and Rs 9,300 crore in 2022 via the open market. The Rs 18,000 crore buyback is priced at a 19% premium over the market price at the time of announcement.
Impact on Nifty IT
The announcement and promoter decision contributed to strong buying in Infosys shares, which climbed to Rs 1,533. Along with other IT names like HCL Tech and Tech Mahindra, the surge pushed the Nifty IT index up 2.4%.