Infosys, one of India’s top IT services companies, has just approved its largest-ever share buyback plan worth ₹18,000 crore, sending ripples across the markets. Here’s everything you need to know about this mega move — from numbers to impact — before you make any investment decisions.
What Has Been Announced
- The board of Infosys approved a buyback of its own shares, totaling ₹18,000 crores.
- The company will repurchase 10 crore (100 million) fully-paid equity shares, each having a face value of ₹5.
- The buyback price is fixed at ₹1,800 per share, which represents roughly a 19% premium over the share’s recent market closing price.
- The shares being bought back will account for approximately 2.41% of Infosys’s paid-up equity share capital (on a standalone basis).
- The buyback will be executed via the tender offer route, meaning shareholders owning shares as on a future record date (to be announced) can voluntarily tender their shares at the buyback price.
How This Buyback Compares with Past Ones
- This is the fifth share buyback announced by Infosys over the past eight years. Previous major buybacks occurred in 2017, 2019, 2021, and 2022-23.
- The 2022-23 buyback (₹9,300 crore) was about half the size of this new one.
- Compared to rivals like TCS and Wipro, Infosys has now matched some of their large buyback programs but stands out in terms of premium and proportion of equity.
Why Infosys Is Doing This — Strategic Rationale
- Returning surplus capital to shareholders: Infosys has reported strong cash flows and reserves. As of mid-2025, the company had significant free cash flow and cash & cash equivalents. This gives it room to use excess capital for buybacks.
- Boosting earnings per share (EPS): By reducing the number of outstanding shares (2.41%), the EPS could improve, assuming revenue and profits stay stable.
- Signal to investors: A strong premium signals that the company believes its shares are undervalued or that it has confidence in future profitability. It can also calm investor concerns during times of market volatility.
- Capital allocation policy: Infosys has a policy of returning a large proportion of free cash flow to shareholders via dividends and buybacks. This move is consistent with that policy.
What Shareholders Should Know / What to Watch
- Record Date & Participation
The record date will determine which shareholders are eligible. If you own Infosys shares (or ADSs convertible to equity), check when the record date is announced. Shareholders must tender the shares to participate. - Payment & Route Details
The buyback is via tender offer, and payment will be in cash. This route gives shareholders the option to accept or reject. - Tax Implications
Shareholders considering tendering shares should check capital gains tax implications, since premium and buyback proceeds may be taxed differently than regular sales. (This is beyond what has been officially detailed yet.) - Impact on Share Price in Short Term
Sometimes, buyback announcements lead to the stock rallying due to expected EPS improvement and investor sentiment. However, short-term price movements can also be volatile. Note: Infosys shares showed a slight dip ahead of the board meeting. - Financial Position & Sustainability
Although the buyback is large, Infosys has enough capital reserves and free cash flows to support this without putting financial stress. But continuous buybacks depend on performance in global demand, project wins, margins, etc.
Possible Concerns & Watch-Outs
- If global demand in IT slows, or margin pressures increase, sustaining such buybacks might be tougher.
- Share buybacks may benefit shareholders but do not necessarily improve fundamental operations or growth prospects by themselves.
- Regulatory and procedural delays (record date, approvals) could affect timeline expectations.
Bottom Line: What This Means for You
If you are a shareholder, this is likely a beneficial event. You may:
- receive a premium for your shares if you tender them;
- see improved EPS and possibly a clearer valuation for Infosys shares;
- benefit from the company’s strong signal about its cash flow and confidence.
If you are a potential investor, this could be a good opportunity: a strong buyback suggests value, and the premium provides a floor for price evaluation. But do compare with market conditions and Infosys’ earnings outlook.