Infosys share buy back: IT giant announces its largest-ever Rs 18,000 crore share buyback; 19% premium for shareholders

Infosys Ltd on Thursday announced a Rs 18,000 crore share buyback programme, signalling confidence in its long-term cash flows and growth prospects even as the IT services major faces muted revenue growth this fiscal.The company said it will repurchase around 10 crore shares at Rs 1,800 apiece, a 19% premium over the stock’s Thursday closing price of Rs 1,509.70 on the NSE. The buyback will account for 2.41% of Infosys’ equity, according to an ET report. The buyback, to be carried out through the tender offer route, will cover all eligible shareholders on a proportionate basis as on the record date.This is the fifth such exercise for Infosys, surpassing its earlier buybacks of Rs 13,000 crore in 2017, Rs 8,260 crore in 2019, Rs 9,200 crore in 2021 and Rs 9,300 crore in 2023. “The current buyback is the biggest-ever for the company,” Infosys said in a filing.Analysts said the move is expected to strengthen key financial metrics such as earnings per share (EPS) and return on equity (ROE), while offering shareholders tax-efficient returns compared to dividends. They added that the programme will also help the company optimise its capital structure by deploying excess cash reserves.Shares of Infosys ended 1.3% lower at Rs 1,512 apiece on the NSE on Thursday as investors booked profits ahead of the board announcement. The stock has shed nearly 20% so far this year, pressured by weak discretionary spending, AI-led disruption in business models and a cautious global demand environment.Brokerages have flagged that unresolved tariff issues and geopolitical uncertainties are prompting clients to delay deal signings and cut back on discretionary IT spending. The company itself has guided for just 1-3% revenue growth in constant currency terms for the current fiscal, underlining the subdued near-term outlook.