The Infosys share price is in focus today after the IT giant set November 14 as the record date for its largest ever, Rs 18,000 crore share, buyback. While the promoters have decided not to participate in the buyback, there is significant buzz across the street across the various contours of the buyback.
Let’s take a look at the key factors investor need to watch out ahead of this record date –
Infosys Buyback: What is happening
The conglomerate will buy back up to 10 crore equity shares through the tender offer route.
This represents 2.41% of the company’s total paid-up equity. The buyback price is fixed at Rs 1,800 per share, a 19% premium over the current market price.
Infosys Buyback: Record date explained
The record date is November 14. This determines which shareholders are eligible to participate. Only those holding Infosys shares on this date can tender their shares for the buyback.
Infosys Buyback: Promoter participation
Infosys promoters and the promoter group, including Nandan Nilekani and Sudha Murty, will not participate in this buyback. As of the buyback announcement, promoters hold a combined 13.05% of the company’s equity.
Infosys Buyback: Buyback route and window
The buyback will be conducted on NSE and BSE via the tender offer method. Once announced, the tendering window will remain open for five working days. Small investors are reserved 15% of the buyback allocation.
Infosys Buyback: What is the purpose of the buyback
As per the regulatory filing, the buyback plans to return surplus funds efficiently while considering strategic and operational cash requirements.
This buyback is the second large-scale repurchase for Infosys since 2022, when the company conducted a Rs 9,300 crore buyback. Among the promoters, Nandan Nilekani holds 1.08%, Narayana Murthy 0.40%, and Sudha Murty 0.91%. Public shareholders account for over 85% of the company’s equity.