Buyback impact: Infosys share price hits new life high for second session in a row; Stock surges 5% since announcement
For the second straight session, Infosys shares hit a new life high to Rs 1575 per share, marginally gaining one per cent on the BSE intraday trade on Friday, as the company begins buyback offer from today. The stock has touched Rs 1559.15 per share an all-time high on Thursday closing.
For the second straight session, Infosys shares hit a new life high to Rs 1575 per share, marginally gaining one per cent on the BSE intraday trade on Friday, as the company begins buyback offer from today. The stock has touched Rs 1559.15 per share an all-time high on Thursday closing.
The information and technology (IT) heavyweight on Wednesday had announced a Rs 9200 crore buyback offer to commence from Friday, June 25, 2021, through an open route. This offer will be active till December 24, 2021, or six months from the start of the offer, Infosys had said in a filing.
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At around 12.40 pm, the shares of the company are trading near the day’s high level, up over 0.75 per cent to Rs 1570 apiece on the BSE. Infosys has a market-capitalisation of Rs 6.56 trillion on the BSE, the exchange data shows.
The stock has surged near five per cent since the announcement of the Buyback offer and rose 23.5 per cent alone in 2021 so far, as per BSE data. It has outperformed the market by surging over 15.5 per cent in the last month, as compared to a four percent rise in the S&P BSE Sensex.
Infosys has proposed to buy back shares at a maximum price of Rs 1,750 per share. The Board approved the buyback on April 14 during its quarter-four results of FY21 announcement, and shareholders approved it on April 19, at the company’s 40th Annual General Meeting (AGM).
Infosys in an exchange filing had said the buyback is being undertaken after taking into account the strategic and operational cash needs in the medium term and for returning surplus funds to the members in an effective and efficient manner.
Kotak Mahindra Capital Company Ltd was appointed as the manager of the buyback, the company said in a filing to the exchanges on Wednesday.
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