Archive · 28 Oct 2025
Infosys Announces Largest Ever Buyback Amid Mixed Investor Sentiment
Infosys, a big technology company, is planning to buy back its own shares.
This means they will use a lot of money, ₹18,000 crore, to purchase shares directly from investors.
This is the biggest buyback they've ever done.
They are offering to buy shares at ₹1800 each.
Usually, when companies do this, their stock price goes up, but lately, Infosys's stock has been going down.
In the past, after some buybacks, the stock price went down a little at first but then went up.
However, this time, the stock price has stayed mostly the same.
Also, the company's founders and their families have decided not to sell their shares in this buyback.
The company is setting aside a portion of the buyback specifically for smaller investors.
Infosys announced its largest ever share buyback program valued at ₹18,000 crore.
The buyback price is set at ₹1800 per share, with 15% reserved for small investors.
The company's stock has traded sideways and is near a six-month low despite the buyback announcement.
Promoters and the promoter group, including Nandan M Nilekani and Sudha Murthy, will not participate in this buyback.
Historically, Infosys's share price has shown mixed reactions to previous buybacks, with some showing initial dips followed by recovery, while others saw immediate gains.
- Who
- Infosys
- What
- Announced its largest ever share buyback program worth ₹18,000 crore.
- When
- The record date is expected to be announced in the coming weeks; buyback approved in September.
- Where
- Bengaluru, India (company headquarters); conducted on NSE and BSE.
- Why
- To return capital to shareholders, especially as the stock has been under pressure, losing about 25% from recent highs.
Past Buybacks Impact on Stock Price
New Buyback Context
Short-term Stock Performance Post-Announcement
Past Buybacks Impact on Stock Price
In 2017 and 2021, Infosys shares initially dropped after buyback announcements but later recovered and delivered positive returns. In 2019 and 2022, the stock saw gains in the short to medium term following buyback announcements.
New Buyback Context
The current buyback, Infosys's largest at ₹18,000 crore, has seen the stock trade sideways and hover near a six-month low, with initial momentum fading after the board's approval.
Investor Participation
Past Buybacks Impact on Stock Price
Promoters and the promoter group, including Nandan M Nilekani and Sudha Murthy, have decided not to participate in the current buyback.
New Buyback Context
Historically, Infosys has repurchased shares at an average premium of over 24.5% across its last four buyback programs, indicating past investor acceptance of buyback pricing.
- Buyback Amount
- ₹18,000 crore
- Buyback Price
- ₹1800 per share
- Shares to be Repurchased
- Up to 10 crore equity shares (2.41% of paid-up equity share capital)
- Small Investor Reservation
- 15%
- Previous Buyback Amount (Total)
- Nearly ₹39,760 crore (across four programs)
- Promoter Participation
- Not participating
