NEW DELHI– Infosys has secured exemptive relief from the U.S. Securities and Exchange Commission (SEC) for its Rs 18,000 crore share buyback, marking the company’s first such program in three years. The IT giant disclosed the development in a filing with the exchanges on Thursday.
The Bengaluru-based firm announced it will repurchase shares at Rs 1,800 apiece, representing a 19.28 percent premium over its previous BSE closing price. The buyback — Infosys’ fifth overall — will require shareholder approval through a special resolution and postal ballot.
Infosys has earmarked Rs 13,560 crore of the total allocation for the buyback, which is expected to take three to four months to complete. Historical trends show the company typically spends about 30 percent of its cash reserves on buybacks, repurchasing around 14–15 percent of its net worth. As of the first quarter, Infosys held Rs 45,200 crore in cash and equivalents, with a net worth of Rs 95,350 crore.
Shares of Infosys rose 1.23 percent on Friday, closing at Rs 1,528 — a gain of Rs 18. The stock has surged Rs 80, or 5.55 percent, over the past five days and is up 7.31 percent in the past month. However, over a longer horizon, the shares have struggled: down Rs 62, or 3.94 percent, in the last six months and off by Rs 421, or 21 percent, over the past year.
Buybacks reduce the number of outstanding shares, effectively boosting earnings per share and potentially driving stronger valuations. Analysts say the move could help Infosys stabilize investor confidence amid broader market volatility.
Meanwhile, Indian equities opened higher Friday, tracking strong global cues. At 9:25 a.m., the Nifty was up 39 points, or 0.16 percent, at 25,045, while the Sensex climbed 114 points, or 0.14 percent, to 81,663. Investor sentiment has been buoyed by expectations that the U.S. Federal Reserve may cut interest rates next week. (Source: IANS)
