Infosys Rs 9200 crore BUYBACK offer opens TODAY—Everything investors should know about this offer

Infosys will begin its buyback offer of Rs 9200 crore from today, June 25, 2021.  Under this buyback offer, the IT giant will buy back shares at a maximum price of Rs 1,750 apiece. As per Infosys proposed timeline, the last date for the buyback would be December 24, 2021, 6 months from the date of the opening of the buyback. Kotak Mahindra Capital Company Ltd has been appointed as the manager of the buyback. 

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The development comes after the Infosys Board had given in-principal approval for the buyback offer on April 14, which was followed by shareholders nod on June 19 at the Infosys 40th annual general meeting.  

Earlier, Infosys, in its filing to exchanges, said the company through advertisements on June 23 in various newspapers had announced for the buyback of its equity shares from the open market through the stock exchange route.  

"Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 5,25,71,428 equity shares, comprising approximately 1.23 per cent of the paid-up equity share capital of the company as of March 31, 2021," the advertisement showed. 

The company will also utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 4,600 crore. Based on the minimum buyback size and the maximum buyback price, the company will purchase an indicative minimum of 2,62,85,714 equity shares. 

"In terms of Regulation 16(ii) of the Buyback Regulations, the buyback is being implemented by way of open market purchases through the Indian stock exchanges and is not extended to the promoters, promoter group and persons in control of the company," it added. 

From FY20, Infosys had enhanced its capital allocation plan and had said it will return 85 per cent of free cash flow cumulatively over a five-year period via buyback and dividends. 

Meanwhile, Infosys shares were trading at Rs 1,568.85, up Rs 9.65 or 0.2 per cent on NSE at 9.30 am