Infosys gains 2.5% after firm says share buyback, special dividend on Jan 11 meeting agenda

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Published: January 9, 2019 12:06:38 PM

Shares of India’s major IT behemoth Infosys gained on Wednesday morning, after the firm said that share buyback and special dividend will be on its agenda when the firm meets on January 11th.

Infosys share price gained by more than 2.6% to hit the day’s high at Rs 688 this morning.

Shares of India’s major IT behemoth Infosys gained on Wednesday morning, after the firm said that share buyback and special dividend will be on its agenda when the firm meets on January 11th. Infosys share price gained by more than 2.6% to hit the day’s high at Rs 688 this morning.

“….Board of the Company will consider proposal(s), including but not to limited to, buyback of fully paid-up equity shares of the Company, payment of special dividend, for implementation of the Capital Allocation Policy at its meeting to be held on January 11, 2019,” Infosys said in a regulatory filing yesterday.

Also read: Share market LIVE updates: Sensex holds gains, Nifty below 10,850; Infosys, Axis Bank shares surge

Notably, on April 13th, Infosys board had decided to pay off Rs 13,000 crore and a special dividend of Rs 10 per share, as part of its plan to payout up to 70% of its free cash flow every financial year. Further, the board had decided an amount of up to approximately Rs 10,400 crore to be paid out to shareholders for the Financial Year 2019, in such a manner, to be decided by the Board, subject to applicable laws and requisite approvals, if any.

Infosys is slated to announce its Q3 results for the period Sep-Dec 2018 on January 11th. According to brokerages, Infosys is expected to report flat operating margin growth in the latest quarter, on the back of capital expenditures in the period. “Infosys is expected to report flat operating margin on a sequential basis owing to aggressive investments to enhance its digital capabilities and sharpen its focus on growth against profitability,” Sharekhan by BNP Paribas said in a recent report.

“We expect Infosys to upgrade lower end of revenue guidance band and expect it to guide for 7-8 per cent CC revenue growth against the 6-8 per cent earlier. The company has announced a slew of deals over the past few months and hence we expect continued confidence in revenue momentum,” Centrum Broking noted.

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