Infosys share buyback: Infosys shares witnessed buying interest on Friday dealings and finished around one per cent higher at ₹1,425.10 apiece on the NSE. Market experts expected this rise in the Infosys share price as the Indian IT major declared its most significant share buyback worth ₹18,000 crore on Thursday evening. In this fifth Infosys buyback, the IT company declared the Infosys share buyback price at ₹1,800 apiece, around ₹276 per share higher ( ₹1800 – ₹1524) from the Infosys share price today. However, the IT company is yet to declare the Infosys share buyback record date.
Infosys buyback 2025
Speaking on Infosys’ share buyback move, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, ‘Infosys has announced a significant share buyback program through a tender offer at ₹1,800 per share, which is a substantial 18% premium over the current market price of ₹1,524.10. The total buyback size is ₹18,000 crore for one crore shares, representing about 2.41% of Infosys’ paid-up equity capital. Importantly, one crore 50 lakh shares are specifically reserved for retail shareholders, making the offer particularly attractive for them.”
Seema Srivastava of SMC Global Securities said that the Infosys buyback acceptance ratio will be low, as a huge number of applications are expected by the existing Infosys shareholders. So, one should buy Infosys shares, as they are expected to touch ₹1,810 in the near term. They also advised participating in the Infosys share buyback.
Infosys share buyback details in 5 points
1] Infosys share buyback price: The Indian IT major has declared a share buyback price of ₹1,800 apiece.
2] Infosys share buyback record date: The IT company has yet to declare the record date for the Infosys share buyback.
3] Infosys share buyback size: In this share buyback move, Infosys has declared that buying shares through the tender route is worth ₹1,800 crore.
4] Infosys share buyback acceptance ratio: “The acceptance ratio for the buyback is expected to be low due to heavy oversubscription. Current estimates suggest that retail shareholders are likely to see a 6-20% acceptance ratio, meaning only a fraction of shares tendered by retail investors are likely to be accepted. Therefore, while the ₹1,800 buyback price offers an attractive arbitrage opportunity, retail investors must understand that only a small portion of shares tendered will be accepted,” Seema Srivastava of SMC Global Securities said.
5] Income tax compliance in Infosys share buyback: “From a tax perspective, shares accepted in the buyback will attract capital gains tax, depending on the shareholder’s applicable slab. Shares not accepted will remain in the shareholder’s demat account and can be held for long-term appreciation or sold in the market at prevailing prices,” said Seema Srivastava.
Infosys buyback: Should you participate?
On whether one should participate in this largest-ever Infosys share buyback, Seema Srivastava said, “Infosys share buyback signals Infosys management’s confidence in the company’s prospects. For retail investors, it is generally advisable to tender shares up to the retail reservation limit (approximately ₹2 lakh worth of shares) to benefit from the substantial premium. Retail shareholders should consider tendering their eligible shares for the Infosys buyback, considering the low acceptance probability, tax implications, and long-term investment strategy.”
Infosys share price outlook
Highlighting the fundamentals of Infosys, Dhanshree Jadhav, Analyst -Technology at Choice Broking, said, “We expect Infosys to deliver Growth and PAT CAGR of 10% and 11% respectively from FY25-FY28E, which is the highest amongst peers led by organic as well as inorganic initiatives. It is trading at an attractive PE of 17x FY28E EPS, amongst Tier-I peers, giving valuation comfort as well. Moreover, zero debt and strong cash & equivalents of over INR350Bn further increase investor comfort with respect to endless opportunities viz. strategic large deals, M&As and Buybacks,” adding, “We remain positive on the stock and maintain our Buy rating with Target Price of ₹1810.”
Infosys buyback history
This is the fifth share buyback by Infosys, and its largest one yet. The last Infosys share buyback programme was announced three years ago in 2022. At that time, the company had announced a share buyback of ₹9,300 crore via an open market route for a maximum price of ₹1,850 per equity share.
In 2017, Infosys announced its first-ever share buyback, where the company purchased 11.3 crore shares or up to 4.92 per cent of its paid-up equity share capital at a price of ₹1,150 per Equity Share, amounting to around ₹13,000 crore.
The company’s second buyback programme, worth ₹8,260 crore, was announced in 2019. The third and fourth ones were worth ₹9,200 crore and ₹9,300 crore, respectively.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
