Infosys board to consider share buyback proposal in September 11 meeting

India’s second-largest IT services company, Infosys Limited, on Monday (September 8) announced that its board of directors will consider a proposal for the buyback of fully paid-up equity shares at its meeting scheduled for September 11, 2025.

Infosys' most recent share buyback took place in 2022. The company approved a ₹9,300-crore buyback programme with a maximum buyback price of ₹1,850 per share.

The offer period ran from December 7, 2022, to February 13, 2023, during which Infosys repurchased approximately 50.27 million shares through open market purchases on Indian stock exchanges.

Also Read: Infosys shares get an upgrade post recent stock correction; Nifty IT up 2.5%

What is a share buyback?

A share buyback involves a company repurchasing its own shares from existing shareholders to reduce the number of shares available in the open market.

Why would a company buy back its own shares and not issue new ones?

·      To increase promoter holding.

·      To support the share price and pay surplus cash to shareholders.

·      To increase the earnings per share, as a buyback reduces the number of outstanding shares.

·      Safeguard against hostile takeovers.

Shares of Infosys Ltd ended at ₹1,436.10, down by ₹8.50 or 0.59%, on the BSE today, September 8.