Infosys completes Rs 9,300 crore buyback 4 months ahead of schedule

15 Feb 2023 , 12:04 PM

Infosys, India’s second-largest software exporter, has completed its Rs9,300 crore share buyback nearly four months before the scheme’s scheduled end date.

According to exchange data, the company has repurchased 60.4 million shares, or 1.44% of total equity capital, at an average price of Rs1,539 per share. The average buyback price was 16.6% lower than the highest offer price of Rs1,850.

The share buyback, which began on December 7, was scheduled to end on June 6, 2023. 

When it released its September quarter results in October, the Bengaluru-based IT behemoth announced an open market share buyback programme.

The tender offer route was used for Infosys’ Rs13,000 crore share buyback in December 2017. In 2019, the company repurchased Rs8,260 crore worth of shares on the open market. The most recent buyback took place in October 2021 via the open market. It was worth Rs9,200 crore in size.

Infosys announced a five-year plan to return 75% of its free cash flow to shareholders beginning in fiscal year 20. The maximum buyback amount is limited by regulations to 25% of the company’s net worth. This was Infosys’ fourth share buyback since its initial public offering in June 1993.

At around 11.35 AM, Infosys was trading 0.26% lower at Rs1,589.10, against the previous close of Rs1,593.25 on NSE. The counter touched an intraday high and low of Rs1,590.10 and Rs1,576 respectively.

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