Infosys reveals its biggest buyback in a decade, amounting to Rs 18,000 crore.

 

Infosys Over the past decade, this marks the company’s fifth buyback. The latest occurred in 2022, involving an open market acquisition valued at Rs 9,300 crore, with an average price of Rs 1,850 per share, resulting in the repurchase of 60 million shares.

Infosys plans to repurchase shares valued at Rs 18,000 crore, marking its largest buyback in a decade amidst challenges for IT stocks stemming from a fragile macroeconomic scenario and trade-related uncertainties.

The firm based in Bengaluru intends to buy back 100 million shares at an average rate of Rs 1,800 each, offering a 19.3% premium over its Thursday closing price of Rs 1,509.50. This accounts for 2.41% of the company’s equity shares within its paid-up equity capital, according to the second-biggest IT services provider in India.

This marks the Infosys  fifth buyback in the past ten years, with the most recent occurring in 2022 when 60 million shares were repurchased through an open market purchase worth Rs 9,300 crore at an average price of Rs 1,850 per share.

Infosys’ most recent buyback follows a year where its shares have dropped by 22 per cent, maintaining their downward trajectory this year as well.

Within the same timeframe, the Infosys larger IT index has seen a decline of more than 17 per cent, marking it as the poorest performer among major sectors, unlike the Nifty50 index, which has risen by 5.5 per cent.