Infosys ₹18,000 Cr Share Buyback Window Opens Tomorrow: Everything You Should Know

IT giant Infosys is set to open the window for its ₹18,000 crore share buyback tomorrow, November 20. This is the largest share repurchase in the company’s history.

According to Infosys, the buyback will help return surplus cash to shareholders in line with its stated capital allocation policy. As of June 30, 2025, the company held consolidated cash and investments of ₹45,204 crore.

“The Buyback is expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base in the long term, thereby leading to long term increase in members’ value,” Infosys said in buyback documents filed with stock exchanges on 18 November.

The company added that the buyback offers shareholders the option to tender their shares for cash or retain them and gain a higher proportional stake without additional investment. Conducted via the tender route, it ensures small shareholders receive either their full entitlement or at least 15% of the total shares being repurchased, whichever is higher.

The board approved the buyback after assessing medium-term cash needs and the firm’s capital allocation strategy, including working capital requirements, planned investments in AI and other areas, potential acquisitions, and contingency reserves.

Key Details of Infosys Share Buyback

Infosys’ board approved the share buyback on September 11, with shareholders later clearing it through a special resolution via postal ballot on November 6. The company plans to repurchase up to 10 crore equity shares of face value ₹5 each, representing about 2.41% of its paid-up equity capital. The buyback will be conducted through the Sebi-mandated tender offer route, with shares purchased at ₹1,800 apiece. BSE will serve as the designated stock exchange.

The buyback size is capped at ₹18,000 crore, amounting to 24.31% of Infosys’ standalone paid-up capital and free reserves, and 21.68% on a consolidated basis, within the regulatory limit of 25%.

All eligible shareholders, including ADS holders who convert their instruments into equity before the record date, can tender shares on a proportionate basis. However, ADS holders must have withdrawn the underlying equity within the specified 49-day window to participate. The tender will follow Sebi’s exchange mechanism.

Infosys has divided the buyback into two categories: small shareholders and the general category. Small shareholders, those holding shares worth ₹2 lakh or less on the record date, are guaranteed the higher of either 15% of the total shares reserved for them or their full entitlement. Infosys has 25,85,684 small shareholders eligible in this category.

The record date for determining entitlement was November 14. The buyback ratio for small shareholders is 2 shares for every 11 held, while the general category ratio is 17 for every 706. Entitlement refers to the number of shares an investor can tender based on holdings on the record date.

The buyback window will remain open from November, 20 to 26, with key post-window processes—including verification, acceptance, settlement, return of unaccepted shares, and payment—scheduled between December 1 and 3. The extinguishment of bought-back shares will be completed by December 12, 2025.

Should You Take Part in Buyback?

Infosys’s promoters and promoter group are not participating in the buyback. As of 30 September 2025, promoters held 14.30% of the company, while the public owned 85.46%. Key promoter holdings include Nandan Nilekani with 1.08%, Narayana Murthy with 0.40%, Sudha Murthy with 0.91%, and their children Rohan and Akshata Murthy with 1.60% and 1.03%, respectively. Analysts earlier told Reuters that the promoters’ decision reinforces confidence in the firm’s long-term prospects and boosts entitlement for retail shareholders.

Experts noted that tax considerations may influence investor behaviour. Since October 2024, buyback proceeds are taxed as dividends, making the offer less attractive for investors in higher tax brackets. However, low-tax or tax-exempt shareholders may still benefit if acceptance ratios, particularly for small shareholders, are favourable.

Infosys shares rose nearly 4% to ₹1,541 after the announcement, emerging as the top gainer on the Nifty IT index, which itself climbed about 3%. The company has a strong track record of capital return through buybacks, having executed major programmes in 2017, 2019, 2021, and 2022. The current buyback marks its fifth large-scale programme in recent years.