Infosys, the second largest company in India, is going to consider a share buyback plan on September 11, 2025. This will be the first buyback of Infosys in 3 years. Share buyback is important for investors because the listed company buys back its own shares from shareholders, generally at a premium price.
Infosys Buyback:
As per the regulatory filing on September 8, Infosys said that its board of directors will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on September 11, 2025.
The last buyback of Infosys was of Rs 9,300 crore in 2022, at a minimum buyback price of Rs 1,850 per share, which was at a premium from its trading price. This buyback was open from December 7, 2022 to February 13, 2024, and Infosys bought back at least 50 million equity shares from shareholders.
What Is A Buyback?
In simple words, buyback means a listed company can buy back shares from their respective shareholders including the public shareholders.
As per ZERODHA's FAQs, generally, companies buyback shares at a price higher than the current market price. There are two types of buyback: tender offer and open market offer. Companies can choose either of these methods to buy back shares from their shareholders.
What Are The Types Of Buyback?
As per ZERODHA FAQS, here's what tender and open-market buyback offers mean:
Tender offer: The company makes an offer to buy back its shares at a particular price (offer price) at which the shareholders can tender, i.e., sell their shares. The amount is credited to the shareholders primary bank account. Clients can apply for more shares than their entitlement or eligibility. However, if more shares are tendered than the entitlement, the acceptance of these additional shares for buyback is subject to the acceptance ratio determined by the company. Any shares not accepted will be returned to the demat account by the RTA.
Open-market offer: The company can buy back its shares by actively buying from sellers on the exchange. The buyback period is mentioned in the buyback offer, and it can last for months. The amount is credited to the shareholders trading account. The buyback period can be checked by visiting the SEBI (WEB) website.
The details of Infosys upcoming buyback will be revealed in due course.
Infosys Share Price:
After market hours, Infosys shares closed at Rs 1432.65 apiece on BSE, down by 0.81% with market cap of Rs 5,95,175.86 crore.
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