Will Infosys See a Surge with Share Buyback Proposal?
Click to start listening
Synopsis
On September 9, Infosys Limited's shares surged by over 4% in anticipation of a board meeting to discuss a potential share buyback. This move could significantly impact the company's stock valuation and attract new investors, marking a pivotal moment for the IT giant.
Key Takeaways
- Infosys shares rose by 4.42% on September 9.
- The board will discuss a potential Rs 13,560 crore buyback on September 11.
- This would mark the company's fifth buyback since 2017.
- Infosys's cash reserves are at Rs 45,200 crore.
- 35 out of 50 analysts recommend a buy rating.
New Delhi, Sep 9 (NationPress) The shares of Infosys Limited, a leading IT corporation, climbed over 4 percent on Tuesday following the announcement that the company's board will deliberate on a proposal for an equity share buyback on September 11. Infosys shares were recorded at Rs 1,496.30, reflecting an increase of Rs 63.40 or 4.42 percent today. Over the past five days, the stock has seen a modest rise of Rs 7, translating to a 0.47 percent increase.
The Bengaluru-based tech firm plans to allocate Rs 13,560 crore for the buyback, with an average premium of 25 percent per share as reported by various media outlets.
If this proposal receives approval, it will mark the fifth buyback executed by Infosys. The company's inaugural buyback took place in 2017, valued at Rs 13,000 crore. The most recent buyback occurred in 2022, during which shares worth Rs 9,300 crore were repurchased at Rs 1,850 per share.
As of the first quarter of FY 26, Infosys has cash and cash equivalents amounting to Rs 45,200 crore, with a net worth of Rs 95,350 crore.
Today, Infosys emerged as a significant gainer on the Nifty index and contributed substantially to the Nifty IT index's surge of over 1.7 percent at market opening.
Among the 50 analysts tracking Infosys, 35 have rated it as a 'buy', 13 suggest a 'hold', and 2 recommend a 'sell', according to multiple sources.
The share buyback serves to decrease the number of outstanding shares, which in turn boosts the Earnings per Share (EPS) as the company's profits are distributed among fewer shares post-buyback. This can enhance stock valuations and attract new investors.
In the last month, Infosys's stock increased by Rs 68.10, representing a rise of 4.77 percent. However, over the past six months, the share price has fallen by Rs 205.15, or 12.06 percent. In a year, the stock has seen a decline of Rs 398.35, equating to a 21.02 percent drop.
Point of View
I believe the proposed share buyback by Infosys illustrates a strategic move aimed at enhancing shareholder value. It reflects the company's robust financial health and long-term commitment to its investors. We remain dedicated to covering such crucial updates as they unfold.
NationPress
09/09/2025
Frequently Asked Questions
What is a share buyback?
A share buyback is a company's repurchase of its own shares from the marketplace, reducing the number of outstanding shares and increasing the Earnings per Share (EPS).
Why is Infosys considering a buyback?
Infosys is considering a buyback to enhance shareholder value and improve stock valuations by spreading profits over fewer shares.
What impact does a buyback have on stock prices?
A buyback typically leads to an increase in stock prices as it signals confidence in the company's financial health and reduces the number of shares available in the market.
How has Infosys stock performed recently?
Recently, Infosys shares rose by 4.42% following the buyback news, but have seen a decline of 21.02% over the past year.
When will the board discuss the buyback proposal?
The board of Infosys will discuss the buyback proposal on September 11.
