2nd Largest IT Giant of India Announces Rs 18,000 Crore Buyback at Rs 1,800 Per Share – Biggest in History!

Infosys Limited announced that its Board of Directors has approved ashare buyback worth Rs 18,000 crore, one of the largest in its history. The program involves repurchasing up to 10 crore fully paid-up equity shares of face value Rs 5 each, representing 2.41 per cent of the company’s total equity share capital. The buyback price has been fixed at Rs 1,800 per share and will be carried out through the tender offer route on a proportionate basis.

The buyback size does not exceed 25 per cent of the aggregate paid-up capital and free reserves. It will be funded through free reserves in line with the company’s capital allocation policy of returning 85 per cent of free cash flow over five years through dividends and share repurchases. Infosys reported cash and cash equivalents of over Rs 42,000 crore and free cash flow of Rs 20,000 crore in FY25, giving sufficient liquidity for the payout.

This move nearly doubles the Rs 9,300 crore buyback in October 2022, which was executed through the open market route at a maximum price of Rs 1,850 per share. Previous buybacks include Rs 13,000 crore in 2017 and Rs 8,260 crore in 2019. The company joins peers like TCS and Wipro, which together with Infosys have spent over Rs 1 lakh crore on buybacks in the last decade.

For US investors, the company has highlighted that holders of American Depositary Shares (ADSs) can participate by cancelling their ADSs and withdrawing underlying equity shares by the record date. Infosys will also seek exemptive relief from the US Securities and Exchange Commission (SEC) to address potential conflicts between Indian and US regulations.

Infosys’ shareholding structure as of September 5, 2025, shows significant ownership from FIIs/FPIs at 27.39 per cent, mutual funds at 20.55 per cent, and Indian financial institutions at 17.20 per cent. The final post-buyback shareholding will depend on the number of shares accepted.

On the market front, Infosys shares closed 1.51 per cent lower at Rs 1,509.5 on the BSE on Thursday, ahead of the board meeting. The buyback to support earnings per share (EPS) and improve return ratios in the near term. 

The buyback is subject to shareholder approval through a postal ballot and other statutory clearances. Detailed documents, including the timeline and eligibility criteria, will be published as per regulations.

Disclaimer: The article is for informational purposes only and not investment advice.