Infosys announces largest ever share buyback at 19% premium

1 hour ago 4

ARTICLE AD BOX

Infosys' board has approved a proposal to equity shares for an amount of ₹18,000 Crore at ₹1,800 apiece.

Published on: Sep 11, 2025 10:11 PM IST

Copy link

Infosys Ltd. has announced its biggest ever buyback at a 19% premium.

This is Infosys' fourth share buyback in its history. (Reuters)

The board of directors of India's second largest IT services firm has approved a proposal to equity shares for an amount of ₹18,000 Crore at ₹1,800 apiece, according to an exchange filing on Thursday.

This is only the fourth share buyback in the history of the company that was co-founded by N.R. Narayana Murthy in 1981. Infosys listed in February 1993.

2017: The first-ever buyback in Infosys' three-decade history. The company repurchased 11.30 crore shares at ₹1,150 apiece, totalling ₹13,000 crore.
2019: Infosys bought back from the open market 11.05 crore shares at an average price of ₹747.38 apiece, totalling ₹8,260 crore.
2021: In another open market transaction, Infosys picked up shares worth ₹9,200 crore to ₹9,300 crore at ₹1,750-1,850 apiece.

But Why A Buyback?

A share buyback typically indicates that the management views the stock as undervalued and that it has sufficient cash reserves. Infosys has a policy to return to substantial portion of its free cash flow to shareholders.

As on 30 June 2025, Infosys had a free cash flow of ₹7,533 crore—a 17.7% year-on-year decline—but still 108.8% of net profit, according to quarterly results data. In US dollar terms, free cash flow was $884 million, or 109% of net profit. Infosys held consolidated cash and investments of ₹45,204 crore as on 30 June 2025.