Infosys Buyback Record Date Eligibility: Zerodha's Nithin Kamath Explains Tax Rules; Should You Buy?

Infosys Buyback: The share price of the second largest IT player in India, Infosys, dropped sharply on November 14, which marks the record date for its Rs 18,000 crore worth of shares buyback. Following this, Zerodha's co-founder Nithin Kamath called Infosys' buyback one of the biggest ever in India. However, Kamath feels it is essential for investors to understand the tax rules on investing in buybacks.

Nithin Kamath On Infosys Buyback:

Through his X handler, Kamath said, "Infy is one of the most highly held stocks by investors, and the record date for their massive buyback is November 14th, the biggest buyback ever in India. That is, you can participate in the buyback if you hold the shares in your demat account as of November 14."

"I think it is essential to understand how you will be taxed on this. If you participate in the buyback at Rs 1800 (current price is ~Rs 1550)."

Here's what Nithin Kamath explained about taxation on Infosys buyback:

Firstly, the money you receive from the buyback is considered income from other sources and is taxed at your applicable slab rate. And, the entire investment value is then considered as a capital loss.

Notably, only scenario where the buyback becomes attractive is when you have other capital gains that can be offset against these capital losses. By the way, if the investment was done 1 year, it is a long-term capital loss.

Or else, it is essentially dividend.

How To Invest In Infosys Buyback At Zerodha?

The procedure to invest in any buyback at Zerodha is simple and easy. Here's a step-by-step guide:

Step 1: Login to Zerodha's Kite.

Step 2: Click on Bids.

Step 3: Click on Corporate actions.

Step 4: Corporate actions such as buybacks, takeovers, OFS, and delistings will be visible.

Step 5: Click on Place bid.

Step 6: Enter the number of shares for tender and click on Submit.

If you have not submitted DDPI or a POA, you need to complete an additional authorisation step by authorising using your CDSL TPIN and verifying the OTP on the pop-up window, as per Zerodha's website.

Infosys Buyback Record Date:

The tech giant fixed November 14 to recognize eligible shareholders for its Rs 18,000 crore buyback. The buyback is going to be carried out at Rs 1,800 per share, which is at a premium of 16.70% from November 13th closing price of Rs 1,542.35 apiece on BSE.

However, it needs to be noted that Infosys promoters are not participating in the buyback. Among the largest promoters of Infosys are ---- Sudha Gopalakrishnan, Rohan Murty, and Nandan M Nilekani.

This buyback is the fifth share repurchase by Infosys. Since 2017, Infosys has delivered four buybacks, with the latest one held in 2022. Infosys carried a buyback 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.

Infosys Buyback Eligibility:

To be eligible for Infosys buyback, investors should hold the company's equity shares in their demat account or physical form as of November 14, 2025. Let's suppose, you bought new Infosys shares after November 14, then you will not be eligible.

Infosys is offering a special benefit to small-scale investors. The company has reserved 15% of the total buback for small shareholders. The maximum limit for investment is Rs 2 lakh or less as of record date.

Infosys Share Price:

At the time of writing, Infosys traded at Rs 1503.60 apiece on BSE, down by 2.51% with market cap of Rs 6,24,655.79 crore. The stock is currently near its intraday low of Rs 1501 apiece.

BUY Infosys Stock?

Analysts at Geojit in their latest report said, Infosys delivered a steady performance driven by resilience in deal execution, continued traction in digital transformation projects and operational discipline across key verticals. Its focus on GenAI adoption, platform monetisation and cloud-led modernisation is expected to enhance scalability and differentiation. Strategic acquisitions in cybersecurity and consulting strengthen domain capabilities and regional presence, while internal efficiency initiatives and talent upskilling support margin resilience.

With improving demand visibility, strong innovation pipelines and disciplined capability allocation, it remains well positioned for sustainable growth in the evolving digital landscape. Adding analysts said, "We reiterate our BUY rating on the stock, based on 22x FY27E adjusted EPS, with a revised target price of Rs. 1,712."

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